The characteristics of groundwater in Sara Wusu Formation and its effects on the eco-environment were studied by using the data of drilling and pumping test, and remote sensing data and vegetation survey. The results showed that the aquifer thickness was the main controlling factor of the groundwater accumulation, and there was a positive correlation between the two above; in the distribution area of the basement depression, aquifer thickness was greater, which was the enrichment area of the groundwater; the buried depth of 3 m was the constrained water level for groundwater exploitation in the beach area. Excessive exploitation of groundwater might cause the succession or degradation of the vegetation on the beach to the sandy land, or even disappear, and speeding up the desertification process. Groundwater mining had no significant effect on the growth of drought-tolerant vegetation species on sandy and dune lands. These research results provided the basic theory and data for the site selection, rational exploitation and utilization of the groundwater, water and soil conservation and ecological environment protection and in the desert.