Climate warming-induced glacier recession has resulted in the development and rapid expansion of glacial lakes in the Himalayan region. The increased melting has enhanced the susceptibility for Glacial Lake Outburst Floods (GLOFs) in the region. The catastrophic failure of potentially dangerous glacial lakes could be detrimental to human life and infrastructure in the adjacent low-lying areas. This study attempts to assess the GLOF hazard of Gangabal lake, located in the Upper Jhelum basin of Kashmir Himalaya, using the combined approaches of remote sensing, GIS, and dam break modeling. The parameters, such as area change, ice thickness, mass balance, and surface velocity of the Harmukh glacier, which feeds Gangabal lake, were also assessed using multitemporal satellite data, GlabTop-2, and the Cosi–Corr model. In the worst-case scenario, 100% volume (73 × 106 m3) of water was considered to be released from the lake with a breach formation time (bf) of 40 min, breach width (bw) of 60 m, and producing peak discharge of 16,601.03 m3/s. Our results reveal that the lake area has increased from 1.42 km2 in 1972 to 1.46 km2 in 1981, 1.58 km2 in 1992, 1.61 km2 in 2001, 1.64 km2 in 2010, and 1.66 km2 in 2020. The lake area experienced 17 ± 2% growth from 1972 to 2020 at an annual rate of 0.005 km2. The feeding glacier (Harmukh) contrarily indicated a significant area loss of 0.7 ± 0.03 km2 from 1990 (3.36 km2) to 2020 (2.9 km2). The glacier has a maximum, minimum, and average depth of 85, 7.3, and 23.46 m, respectively. In contrast, the average velocity was estimated to be 3.2 m/yr with a maximum of 7 m/yr. The results obtained from DEM differencing show an average ice thickness loss of 11.04 ± 4.8 m for Harmukh glacier at the rate of 0.92 ± 0.40 m/yr between 2000 and 2012. Assessment of GLOF propagation in the worst-case scenario (scenario-1) revealed that the maximum flood depth varies between 3.87 and 68 m, the maximum flow velocity between 4 and 75 m/s, and the maximum water surface elevation varies between 1548 and 3536 m. The resultant flood wave in the worst-case scenario will reach the nearest location (Naranaag temple) within 90 min after breach initiation with a maximum discharge of 12,896.52 m3 s−1 and maximum flood depth and velocity of 10.54 m and 10.05 m/s, respectively. After evaluation of GLOF impacts on surrounding areas, the area under each inundated landuse class was estimated through the LULC map generated for both scenarios 1 and 2. In scenario 1, the total potentially inundated area was estimated as 5.3 km2, which is somewhat larger than 3.46 km2 in scenario 2. We suggest a location-specific comprehensive investigation of Gangbal lake and Harmukh glacier by applying the advanced hazard and risk assessment models/methods for better predicting a probable future GLOF event.