On 21 March 2008, an Ms7.3 earthquake occurred at Yutian County, Xinjiang Uygur Autonomous Region, which is in the same year as 2008 Mw 7.9 Wenchuan earthquake. These two earthquakes both took place in the Bayar Har block, while Yutian earthquake is located in the west edge and Wenchuan earthquake is in the east. The research on source characteristics of Yutian earthquake can serve to better understand Wenchuan earthquake mechanism. We attempt to reveal the features of the causative fault of Yutian shock and its co-seismic deformation field by a sensitivity-based iterative fitting (SBIF) method. Our work is based on analysis and interpretation to high-resolution satellite (Quickbird) images as well as D-InSAR data from the satellite Envisat ASAR, in conjunction with the analysis of seismicity, focal mechanism solutions and active tectonics in this region. The result shows that the 22 km long, nearly NS trending surface rupture zone by this event lies on a range-front alluvial platform in the Qira County. It is characterized by distinct linear traces and a simple structure with 1–3 m-wide individual seams and maximum 6.5 m width of a collapse fracture. Along the rupture zone are seen many secondary fractures and fault-bounded blocks by collapse, exhibiting remarkable extension. The co-seismic deformation affected a big range 100 km × 40 km. D-InSAR analysis indicates that the interferometric deformation field is dominated by extensional faulting with a small strike-slip component. Along the causative fault, the western wall fell down and the eastern wall, that is the active unit, rose up, both with westerly vergence. The maximum subsidence displacement is ∼2.6 m in the LOS, and the maximum uplift is 1.2 m. The maximum relative vertical dislocation reaches 4.1 m, which is 10 km distant from the starting rupture point to south. The 42 km-long seismogenic fault in the subsurface extends in NS direction as an arc, and it dipping angle changes from 70° near the surface to 52° at depth ∼10 km. The slip on the fault plane is concentrated in the depth range 0–8 km, forming a belt of length 30 km along strike on the fault plane. There are three areas of concentrating slip, in which the largest slip is 10.5 m located at the area 10 km distant from the initial point of the rupture.