This study quantitatively analyzed spatiotemporal changes in land use and landscape pattern in a coastal gulf region of southeast China by comparing classified satellite images from 1988, 2002, and 2007, using a geographic information system (GIS), remote sensing (RS), and landscape pattern metrics. The results show an increase in cropland, built-up area, and aquaculture area and a decrease in orchards, woodland, and beach area during 1988–2007. Over the study period, 64.3% of newly-expanded cropland was from woodland; newly-expanded built-up area of 34.8, 27.2, and 20.4% was converted from cropland, woodland, and beach areas, respectively; and newly-expanded aquaculture increased by 45.1 and 29.4% from beach and water body areas, respectively. Trend analysis of landscape pattern metrics demonstrates fragmentation of the landscape, with landscape pattern structure becoming more complex over the last two decades in the Louyuan Gulf region. Urbanization and policy developed to transfer beach/seawater areas into built-up area/aquaculture are the two main driving forces contributing to dynamic changes in land use and landscape pattern in the last two decades in Louyuan.