This article took Fengxian District, Shanghai as an example to do land ecological suitability assessment for urban residential area location. Topography, land use, natural environment, and service facilities were chosen as factors of the index system. The assessment was accomplished with ecological sensitivity analysis and land suitability evaluation. The result shows that the maximum optimum area for urban resident area accounts for 18.88% of the total area; the moderate optimum area 8.20%, the area for ecological protection 26.52%, and the basic farmland 31.49%. Based on the results, suggestions and recommendations were made on urban development and environmental protection of Fengxian District.