Understanding the relationship between land use change and ecosystem service values (ESVs) is the key for improving ecosystem health and sustainability. This study estimated the spatial and temporal variations of ESVs at town scale in relation to land use change in the Loess Plateau which is characterized by its environmental vulnerability, then analyzed and discussed the relationship between ESVs and land use pattern. The result showed that ESVs increased with land use change from 1982 to 2008. The total ESVs increased by 16.17% from US$ 6.315 million at 1982 to US$ 7.336 million at 2002 before the start of the Grain to Green project, while increased significantly thereafter by 67.61% to US$ 11.275 million at 2008 along with the project progressed. Areas with high ESVs appeared mainly in the center and the east where largely distributing orchard and forestland, while those with low ESVs occurred mainly in the north and the south where largely distributing cropland. Correlation and regression analysis showed that land use pattern was significantly positively related with ESVs. The proportion of forestland had a positive effect on ESVs, however, that of cropland had a negative effect. Diversification, fragmentation and interspersion of landscape positively affected ESVs, while land use intensity showed a negative effect. It is concluded that continuing the Grain to Green project and encouraging diversified agriculture benefit to improve the ecosystem service.