The aim of this research was to assess the land use/land cover (LULC) changes and its impact on land surface temperature (LST) using remote-sensing (RS) technique in the district Khanewal, Punjab, Pakistan. Data were pre-processed using ERDAS imagine 15 and Arc GIS 10.4 software for layer stacking, mosaicking, and sub-setting of Landsat images. After pre-processing, the supervised classification scheme was applied for the years 1980, 2000, and 2020, which explains the maximum likelihood algorithm to identify LULC changes observed in the study area. "Built-up area" in 1980 occupied 1.75% but in 2020, the build-up area increased (5.27%) compared to 2020. Vegetation area was decreased by 4.12% from 1980 to 2020 in district Khanewal. It was observed that there has been a rapid change in vegetation area to build-up area. The LST values were increased by 0.50°C from 1980 to 2020 due to the increasing build-up area from East to West direction in district Khanewal. Maximum and minimum normalized difference vegetation index (NDVI) values were observed 0.72 and −0.2 for 1980 and 2020. The regression line produced a definitive explanation, showing a strong negative correlation with NDVI and LST. The outcomes of this study indicated that a dramatic transformation took place in district Khanewal regarding a decrease in greenness due to a rapid increase in population density, urban growth, and other infrastructural developments. Thus, these results will be used in regional and urban planning and will be used for managing agriculture in the coming years of rapid environmental changes.