Land use and land cover change (LUCC) and its spatio-temporal characteristics are essential for natural resource management and sustainable development. LUCC is one of the major factors that affect the ecosystem and the services it provides. In this study, we used remote sensing techniques and a geographical information system to extract the land cover categories based on the Object-Based Image Analysis (OBIA) technique from Landsat TM/ETM/OLI satellite images in the transboundary Karnali River Basin (KRB, China and Nepal) of central Himalayas from 2000 to 2017. Spatio-temporal integrated methodology-Tupu was used to spatially show the LUCC as well as spatial characteristics of the arisen Tupu and shrunken Tupu. In addition, the ecosystem services value (ESV) were obtained and analyzed for each land cover category. In 2017, forest covered the highest area (33.45%) followed by bare area (30.3%), shrub/grassland (18.49%), agriculture (13.12%), snow/ice (4.32%), waterbody (0.3%) and built-up area (0.04%) in the KRB. From 2000 to 2017, the areas of forest, waterbody and snow/ice have decreased by 0.59, 6.14, and 1072.1 km 2 , respectively. Meanwhile, the areas of shrub/grassland, agriculture, barren land, and built-up categories have increased by 82.21, 1.44, 991.97, and 3.11 km 2 , respectively. These changes in the land cover have led to an increase in the ESV of the basin, especially the increase in shrub/grassland, agriculture, and water bodies (in the higher elevation). The total ESV of the basin was increased by $1.59 × 10 6 from 2000 to 2017. Anthropogenic factors together with natural phenomena drive LUCC in the basin and thus the ESV. The findings of this study could facilitate the basin-level policy formulation to guide future conservation and development management interventions.Ecosystem function refers to the habitat, biological or system properties and physical processes that occur within or across the ecosystem [17]. Ecosystem services are the benefits humans reap from the ecosystem function [17][18][19] that includes provisioning, regulating, cultural and supporting services [18,20]. In addition, the ecosystem function plays an important and multi-dimensional (ecological, socio-cultural and economic) role in the human society [21]. Ecosystem services do not directly flow from nature to human well-being, rather this occurs through the interaction with other forms of capital such as human capital (presence of human being), built capital (human built environment) and social capital (their community) [22]. Generally, the structure of the ecosystem is modified due to increased land use intensity and frequent changes in the land cover types. This results in changes in the ecosystem functions and the associated services it provides [23][24][25]. In recent decades, ecosystem services have been degrading due to an ever-increasing demand for these services, leading to a substantial and largely irreversible loss of natural and biological diversity life on earth [18]. The assessment and valuation of ecosystem ser...