The rapidly increasing population of human beings in semi-arid areas is often considered as a major factor of land degradation. Only a few studies have examined the dynamics of human settlements on the composition, diversity, structure and palatability of range vegetation in Southern Punjab Pakistan. The current study aims to assess whether the distance from settlements had any effect on the range vegetation’s diversity and cover. In order to determine the impact of human settlements on the vegetation, the sampling area (Thal rangeland) was classified into three categories, i.e., Near (1–2 km from human communities), Away (2–4 km from human communities), and Far (4–6 km from human settlements). A total of 75 transects in all of the three sites were placed in the study sites. Along the transects, a quadrate of 1 m2 after every 10 m was randomly placed. The study site yielded floral diversity of a total of 29 species, representing 23 genera and belonging to 9 families. Results showed that the areas away from the human communities had higher species diversity (20), while the site near to human settlements depicted lower diversity (14). It was observed that, although the site near to communities had lower diversity, it depicted higher plant density, while the highest diversity along with the lowest plant density was observed in sites away from the communities. The study concluded that the diversity of range grasses, especially desirable species, was affected by distance to human settlements. These findings could be useful to detect flora changes, establish habitat protection priorities and improve efforts for conserving natural landscapes.