Magnetic susceptibility in sediments has been thoroughly studied as a paleoenvironmental proxy over the last decades. However, it is unknown to what extent magnetic susceptibility variation is also a diagnostic of different sediment sources. Here we investigate if multiple magnetic susceptibility-based parameters can effectively be used as sediment source indicators. New magnetic property data from the Mu Us and Tengger Deserts in China are compared to previously known sediment provenance based on other well-established proxies. To assess the magnetic properties of these deserts, magnetic susceptibility and its out-of-phase component, its dependence on frequency, temperature and low-field amplitude are analyzed. Our results indicate similar sources for the western Mu Us Desert and the Tengger Desert and a distinct source for the eastern Mu Us, in-line with previously hypothesized provenance patterns. However, magnetic properties within the Tengger Desert sediments are homogenous, which may suggest a uniform provenance for the entire Tengger Desert, that the sediments are greatly reworked, or similar magnetic properties in potential multiple source regions. Magnetite is the major magnetic mineral in the study area and the dominant causes for divergence in magnetic properties are the magnetic mineral concentration and domain state. The results here, in particular from the Mu Us, suggest considerable promise for using magnetic susceptibility parameters in desert sediment provenance research.