Eco-hydrological research in arid inland river basins has been a focus of geologists and ecologists as it is crucial for maintaining the sustainable development of socio-economy, particularly in ecologically vulnerable areas. Based on the research work carried out in the Tarim River basin of Xinjiang, northwestern China, this paper summarizes synthetically the climate change and associated responses of water resources in the mountainous area, land use and land cover in the oasis, and plants responding to environmental stresses in the desert area of the river basin. Research gaps, challenges, and future perspectives in the eco-hydrological studies of the Tarim River basin are also discussed.