Terminal lakes are widely distributed in the arid and semi-arid Gobi of Mongolia, and serves as important water resource for local people and livestock. However, such lakes are subject to great fluctuations in its size depending on climatic conditions and human water utilization. The Orog Lake is one such example that has shown remarkable fluctuation in recent years. In this study, we investigated the temporal changes of Orog Lake surface area by using 16-day MODIS 250 m NDVI products from 2000 to 2010. The results were compared with climate variability represented by monthly precipitation and temperature. Our results show that the Orog Lake gradually shrank for the period from 2000 to 2010, but with a significant range of seasonal and inter-annual variability. The lake area showed considerable seasonal variations, as it expanded in spring and fall, primarily due to snow melt and summer precipitation, respectively. Extreme drought period from 2000 to 2002 triggered the substantial reduction in lake area, leading to dry-up in year 2005, 2006, 2007, and 2009. After dry-up once occurred in 2005, the lake repeated reappearance and disappearance depending on seasonal and annual precipitation. Our findings implicate that the ground water fluctuated around the lake bottom level since 2005. This suggests the highly vulnerable nature of Orog lake, which greatly depends on future precipitation change.