China has experienced a period of rapid economic growth during the past few decades especially in Shanghai. The rapid urbanization has caused great change for land use and cover change (LUCC), which is a prominent feature of global change. This paper focuses on land use history and the driving forces of LUCC in Shanghai from 1990 to 2010. We evaluated the LUCC of Shanghai based on three period Landsat images using the land use transition matrix model, the land use dynamic degree model, and the land use degree model. Then we analyzed the potential driving forces from different dimensions. The results show that the most obvious pattern of LUCC is the increase of built-up area and the decrease of arable land. The land use change dynamic from 2000 to 2010 is much greater than that from 1990 to 2010. The main driving forces of LUCC are human activity and social economic development.