Land surface temperature (LST) analysis of satellite data is critical for studying the environmental land degradation impacts. However, challenges arise to correlate the LST and field data due to the constant development in land use and land cover (LULC). This study aims to monitor, analyze, assess, and map the environmental land degradation impacts utilizing image processing and GIS tools of satellite data and fieldwork. Two thermal and optical sets of Landsat TM + 5 and TIRS + 8 data dated 1984 and 2018 were used to map the thermal and LULC changes in the Suez Canal region (SCR). The LULC classification was categorized into water bodies, urban areas, vegetation, baren areas, wetland, clay, and salt. LULC and LST change detection results revealed that vegetation and urban areas increased in their areas in 34 years. Moreover, 97% of the SCR witnessed LST rise during this period with an average rise rate of 0.352 °C per year. The most effective LULC class changes on LST were the conversions from or to baren areas, where baren areas were converted to 630.5 km2 vegetation and 104 km2 urban areas rising the LST to 43.57 °C and 45 °C, respectively. The spectral reflectance (LSR), LST profiles, and statistical analyses examined the association between LST and LULC deriving factors. In combination with field observations, five hotspots were chosen to detect and monitor natural and human land degradation impacts on LST of the SCR environment. Land degradations detected include water pollution, groundwater rising, salinity increase, sand dune migration, and seismic activity.