Background: Human activities are rapidly shrinking the forests worldwide, leading to severe environmental issues. Despite being a country with limited forests, Pakistan has the second highest rate of forest degradation in South Asia. This study investigates the rapid loss of forest cover in Bhimber Azad Kashmir Pakistan, the southwest district of Azad Jammu and Kashmir (AJK), Pakistan, and tracks the associated changes in temperature during the past three decades. The study analysis used mixed-methods approaches, including remote sensing data for geographical analysis and regression statistics for spatial measurement in land-use dynamics. The study used the past 300 years’ data to map the land-use land-cover change for forest cover change and its association with land surface temperature. Results: The results of the research confirmed that over the past 30 years, the study area has experienced a gradual loss in forest cover, resulting in a net decrease of 8.22% of the total, which amounts to a total loss of 10,909.84 hectares from 1990 to 2021. Regression coefficient value of 0.83 confirmed a strong association between forest cover loss and land surface temperature, that is, the p value 0.004 less than 0.05 indicates that decrease in forest cover area effectively increases land surface temperature. Conclusions: The study concludes an urgent need to raise awareness among local people about the importance of forest cover and provide valuable insights for policymakers to implement district-level measures in order to safeguard the forests.