Abstract: Ecological compensation can effectively alleviate the contradiction between regional economy and ecology. Based on the land use classification data of Altay Prefecture, Xinjiang Autonomous Region from 2010 to 2020, the ecosystem service value (ESV) of the study area was calculated by using equivalent factor method and the spatial-temporal change analysis was carried out. The revised ecological compensation priority index was used to select the ecological compensation areas in 6 counties and 1 city of Altay Prefecture, and the amount of ecological compensation was calculated. The results showed that the land use change in Altay Prefecture from 2010 to 2020 was "four increases and two decreases". The area of grassland, cultivated land, water area and construction land increased, while the area of forest land and unused land decreased. From 2010 to 2020, the total ESV showed a fluctuating change of decreasing and increasing alternately, and the overall decrease was 0.85%, with the largest decrease in forest ESV. The highest proportion of the value of a single function was the adjustment service. The theoretical total amount of ecological compensation in Altay Prefecture is 6.005 billion yuan, and the proportion of ecological compensation priority and compensation amount in the total amount is as follows: Qinghe County (21.60%) > Burjin County (18.33%) > Jimunai County (10.46%) > Habahe County (11.43%) > Altay City (10.99%) > Fuyun County (14.12%) > Fuhai County (13.07%). Based on the research results, the strategies of improving ecological compensation in Altay Prefecture were put forward from the aspects of giving play to the role of the government, perfecting the legal system, broadening the fund channels, innovating the compensation methods and standardizing the compensators and the indemnators.