Based on the PS-InSAR technology, using ENVISAT ASAR data of ESA ( European Space Agency), we extracted and analyzed the average deformation rate of the Lijiang Fault from 2003 to 2010 by small baseline set interference processing method. The research results demonstrated that: (1) The deformation characteristic of Lijiang Fault showed the sinistral strike-slip; (2) The annual deformation rate in LOS direction was between 3 mm/a and 5 mm/a, and consistented with geological data. This research could provide the credible fault zone activity date for the earthquake forecast of the Lijiang region. However, because of the section of Lijiang Fault into the city was affected by urbanization, and fault deformation and ground subsidence information of the Li- jiang Fault were coexisted, it was difficult to separate.