The　effect　of　terrain　shadow,　including　the　self　and　cast　shadows,　is　one　of　the　main　obstacles　for　accurate　retrieval　of　vegetation　parameters　by　remote　sensing　in　rugged　terrains.　A　shadow-　eliminated　vegetation　index　(SEVI)　was　developed,　which　was　computed　from　only　red　and　near-infrared　top-of-atmosphere　reflectance　without　other　heterogeneous　data　and　topographic　correction.　After　introduction　of　the　conceptual　model　and　feature　analysis　of　conventional　wavebands,　the　SEVI　was　constructed　by　ratio　vegetation　index　(RVI),　shadow　vegetation　index　(SVI)　and　adjustment　factor　(f　(Δ)).　Then　three　methods　were　used　to　validate　the　SEVI　accuracy　in　elimination　of　terrain　shadow　effects,　including　relative　error　analysis,　correlation　analysis　between　the　cosine　of　solar　incidence　angle　(cosi)　and　vegetation　indices,　and　comparison　analysis　between　SEVI　and　conventional　vegetation　indices　with　topographic　correction.　The　validation　results　based　on　532　samples　showed　that　the　SEVI　relative　errors　for　self　and　cast　shadows　were　4.32%　and　1.51%　respectively.　The　coefficient　of　determination　between　cosi　and　SEVI　was　only　0.032　and　the　coefficient　of　variation　(std/mean)　for　SEVI　was　12.59%.　The　results　indicate　that　the　proposed　SEVI　effectively　eliminated　the　effect　of　terrain　shadows　and　achieved　similar　or　better　results　than　conventional　vegetation　indices　with　topographic　correction.　©　2018,　©　2018　The　Author(s).　Published　by　Informa　UK　Limited,　trading　as　Taylor　&　Francis　Group.