Human-involved activities such as arson, deforestation, negligence, etc., have escalated forest fires. Such forest fires pose a risk to the ecosystem and biodiversity. This study focused on determining the pattern of forest fires, their drivers and effects on plant biodiversity, and management options to reduce the onset of fires. The study used MODIS data to determine forest fires’ distribution pattern and frequency from 2010 to 2021. Field and 30 general household surveys and five key informant interviews were conducted in each of the three community forests to gain more insight into the impacts of forest fires. The collected data were then analyzed using spatial and statistical tools such as QGIS, Microsoft Excel, and RStudio. The research showed that Mahottari district experienced a total of 288 counts of fires in the last twelve years, i.e., from 2010 to 2021. Out of total fire incident detection, about 16 incidents were detected with greater than 30% confidence. The highest number of fire incidents was recorded in 2013, with 39 incidents; the lowest was recorded in 2020, with 16 fire incidents. It was observed that the fire season peaked in March and April, and the highest fire occurrence was observed in March 2019, with 27 fire incidents. It was also noted that 2013 had the driest days and the highest fire occurrences in the last twelve years, indicating a link between fire occurrence and dry days. The R square value of the correlation between fire days and fire occurrence was 0.255. Further, analysis showed that dry season and intentional fire were the leading causes of forest fires. Similarly, the construction of fire lines and clearing and the appointment of forest watchers were some of the local practices to reduce and manage forest fires.