Improving the understanding and the monitoring of high elevation regions hydrology is of major relevance from both societal and environmental points of view for many Asian countries, in particular in terms of flood and drought, but also in terms of food security in a changing environment. Satellite and airborne remote sensing technologies are of utmost for such a challenge. Existing imaging spectro-radiometers, radars, microwave radiometers and backscatter LIDAR provide a very comprehensive suite of measurements over a wide rage of wavelengths, time frequencies and spatial resolutions. It is however needed to devise new algorithms to convert these radiometric measurements into useful eco-hydrological quantitative parameters for hydrological modeling and water management. The DRAGON II project entitled Key Eco-Hydrological Parameters Retrieval and Land Data Assimilation System Development in a Typical Inland River Basin of Chinas Arid Region (ID 5322) aims at improving the monitoring, understanding, and predictability of hydrological and ecological processes at catchment scale, and promote the applicability of quantitative remote sensing in watershed science. Existing Earth Observation platforms provided by the European Space Agency as well as prototype airborne systems developed in China - ENVISAT/AATSR, ALOS/PRISM and PALSAR, Airborne LIDAR - are used and combined to retrieve advanced land surface physical properties over high elevation arid regions of China. The existing synergies between this project, the CEOP-AEGIS project (FP7) and the WATER project (CAS) provide incentives for innovative studies. The investigations presented in the following report focus on the development of advanced and innovative methodologies and algorithms to monitor both the state and the trend of key eco-hydrological variables: 3D vegetation properties, land surface evaporation, glacier mass balance and drought indicators.