In this paper, an attempt has been made to assess, prognosis and observe dynamism of soil erosion by universal soil loss equation (USLE) method at Penang Island, Malaysia. Multi-source (map-, space- and ground-based) datasets were used to obtain both static and dynamic factors of USLE, and an integrated analysis was carried out in raster format of GIS. A landslide location map was generated on the basis of image elements interpretation from aerial photos, satellite data and field observations and was used to validate soil erosion intensity in the study area. Further, a statistical-based frequency ratio analysis was carried out in the study area for correlation purposes. The results of the statistical correlation showed a satisfactory agreement between the prepared USLE-based soil erosion map and landslide events/locations, and are directly proportional to each other. Prognosis analysis on soil erosion helps the user agencies/decision makers to design proper conservation planning program to reduce soil erosion. Temporal statistics on soil erosion in these dynamic and rapid developments in Penang Island indicate the co-existence and balance of ecosystem.