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Rapid urbanization has occurred in northwestern China, threatening the sustainability of its fragile dryland ecosystems. A lack of precise urban land-cover information has limited our understanding on the urbanization in the dryland. Here, we examined urban land-cover changes from 2000 to 2014 in 21 major cities that comprise over 50% of the developed land in arid China, using Landsat Enhanced Thematic Mapper Plus and Operational Land Imager data, and a hybrid classification method. The 15-m resolution urban land-cover products (including impervious surfaces, vegetation, bare soil, and water bodies) had an overall accuracy of 90.37%. Based on these new land use products, we found the urbanization in arid China was characterized by the dramatic expansion of impervious surface (+13.23%) and reduction of bare soil (−13.41%), while the proportions of vegetation (+0.27%) and water (−0.10%) remained stable. The observed dynamic equilibrium of vegetated ratio implies an increasing harmonization of urbanization and greening, which was particularly important for the sustainability of fragile urban ecosystems in arid regions. From an economic perspective, gross domestic product and population were significantly correlated with impervious surfaces, and oasis cities displayed a stronger ability to attract new residents than desert cities.