The large tectonic lake is one of the most important water bodies in the source area of the Yellow River (SAYR), northeastern Qinghai-Tibet Plateau (QTP). It plays a key role in decelerating climatic change and regulating regional climate patterns. In this study, we used Landsat images (MSS, TM, ETM+ and OLI) of Lake Gyaring and Lake Ngoring (the Two Sisters Lakes), which are the two largest tectonic lakes in the SAYR, to determine annual lake area fluctuations from 1986 to 2020. The results show that lake area increases were generally consistent with a warming trend in the SAYR. The temperature signals were separated from the lake area changes by using a detrending analysis and found that the processed data are closely correlated with variations of precipitation and streamflow in the SAYR, and the previously reported paleoclimate records, which include the δ18O record from stalagmite, A/C (Artemisia/Chenopodiaceae) ratio from lake sediment and scPDSI (self-calibrating Palmer Drought Severity Index) from the tree ring on the northeastern margin of the QTP. The phase of relatively large lake areas typically coincides with a negative excursion in δ18O, a high A/C ratio, and elevated scPDSI values, while the opposite is true for smaller lake areas. It is suggested that the total area of the Two Sisters Lakes is closely associated with hydroclimatic conditions in the SAYR. Furthermore, an association of high TSI anomalies with the water area expansion of the Two Sisters Lakes is also observed, implying that solar activity is the key driving factor for the hydrologic variability in the SAYR on decadal timescales. The findings of our study highlight the validity of previous paleoclimate archives in the northeastern QTP and demonstrate the potential of using remote sensing techniques to investigate paleoclimate.