The universal and serious soil erosion affects deeply on soil degradation in dry and hot valley of Jinshajiang River area, Yunnan province. Based on studies on soil erosion status of different degraded soils, spatial distribution of soil degradation induced by soil erosion and occurrence of different types of soil degradation conducted by soil erosion in the area, the effect and mechanism of soil erosion on soil degradation. The results show: (1) Soil and water loss is a key factor to induce the degradation of soils, and types and intensity of soil erosion control, the spatial distribution of soil degradation; (2) The main mechanisms of soil erosion to soil degradation are: the quantity and degrees of soil degradation depends on intensity of soil erosion; by washing and denudation, moving and sediment and burying, soil erosion results in and accelerates soil degradation according to mechanism analysis of several typical soil degradation.