This paper analyses the contribution of biological geotextiles to gully stabilization in the urban area of So Luis City (Sacav,m District). Biological geotextile mats were constructed from palm leaves. At Sacav,m, gully rehabilitation included the following techniques: (1) installation of Buriti geotextiles, in association with barriers of wooden stakes and the construction of contoured terraces; (2) analysis of sediment particle size and (3) photograph comparison of the development of vegetal cover. Rehabilitation used similar to 30 kg of grass seeds (Brachiaria decumbens) on slopes, in combination with geotextiles. Besides recuperating a degraded area, income has been generated to poor people, who live around Sacav,m gully, either by producing the geotextiles or by applying them on the soil, together with grass seeds, lime and NPK to improve soil properties.