In the last decades, there have been large areas of agricultural land that were abandoned in Europe, producing significant social and environmental impacts. Land abandonment is a dynamic process, which is influenced by a complex range of drivers that vary over time and space. This process is driven by a combination of socio-economic, political, and environmental factors by which formerly cultivated fields are no longer economically viable under existing land-use and socio-economic conditions. The implications of land abandonment on biodiversity and other ecosystem services can be positive or negative depending on the conservation status of the area, agro-climatic conditions, and local factors. Therefore, the scope and extent of environmental impacts vary over time and location. Considering that land abandonment is a contentious issue in Europe, there is still growing need for research on this topic. This paper reviews (i) drivers and consequences of farmland abandonment in Europe, (ii) policy measures and tools developed by the European Union in relation to land abandonment process, (iii) the impacts and indicators that are used to assess ecosystem services that are related to land abandonment, and (iv) the methods by which socio-economic, environmental, and cultural values can be assessed. An overview of key impacts and indicators and the impact assessment methodologies will guide policy-making and planning processes that focus on sustainability impact assessment of land abandonment related to ecosystem services in Europe.