The paper is a case study in Qinghai Province using GPS positioned grass measurement. A relationship between pasture output and Normalized Difference Vegetation Index (NDVI) for NOAA/AVHRR was analyzed using linear and exponential models for estimating pasture output for various grass types. The results of the estimating models are acceptable, since the statistical correlation coefficient square (R2) exceeds 0.67. Given this level of precision they can reasonably be used for estimating large-scale pasture output. Based on the estimation of remote sensing pasture output, the livestock carrying capacity of natural pasture in Qinghai was calculated and analyzed. Research results show that the yearly county maximum livestock carrying capacity in the southern region of Qinghai Province exceeds that of the northern region of Qinghai Province. The livestock carrying capacities in most southern counties of Qinghai and Qilan county are about 1000000-2000000 sheep units. The livestock carrying capacities in the counties of Haixi and in most counties in Haidong are less than 500000 sheep units.