Urbanization is expanding rapidly globally, particularly in developing countries within the Global South. This study explores the impacts of urbanization on land use, land cover (LULC), and microclimates in Khulna, Bangladesh, a fast-growing industrial city. By utilizing satellite imagery from 2000, 2010, and 2020, the research examines temporal changes in LULC and corresponding shifts in land surface temperature (LST) that affect the local microclimate. The analysis reveals substantial vegetation and forest cover reductions, accompanied by a notable expansion of built-up areas. These land use changes are directly associated with a significant increase in average LST over the two decades, indicating a clear link between urban expansion and rising surface temperatures. The study underscores the importance of sustainable urban planning to mitigate these negative environmental consequences, particularly in rapidly urbanizing regions like Khulna. As the city grows, strategies such as green infrastructure development and preservation of natural landscapes are critical to curbing the heat island effect and protecting local ecosystems. This case is a vital example for other cities in developing nations, where balancing urban growth with environmental sustainability is increasingly critical to ensuring long-term resilience against climate-related challenges.