Introduction: Anthropogenic disturbances are increasingly affecting the vitality of tropical dry forests. The future condition of this important biome will depend on its capability to resist, and recover from these disturbances. So far, the temporal stability of dryland forests is rarely studied, but could serve as a basis for forest management and restoration. Methodology: In a degraded dry Afromontane forest in northern Ethiopia, we explored remote sensing derived indicators of forest stability, using MODIS satellite derived NDVI time series from 2001 to 2018. Resilience, resistance and variability were measured using the anomalies (remainders) after time series decomposition into seasonality, trend and remainder components. Growth stability was calculated using the integral of the undecomposed NDVI data. These NDVI derived stability indicators were then related to environmental factors of climate, topography, soil, tree species diversity, and disturbance, obtained from a systematic grid of field inventory plots, using boosted regression trees in R. Resilience and resistance were adequately predicted by these factors with an R2 of 0.67 and 0.48, respectively, but the models for variability and growth stability were weaker. Precipitation of the wettest month, distance from settlements and slope were the most important factors associated with resilience, explaining 51% of the effect. Altitude, temperature seasonality and humus accumulation were the significant factors associated with the resistance of the forest, explaining 61% of the overall effect. A positive effect of tree diversity on resilience was also significant, except that the impact of species evenness declined above a threshold value of 0.70, indicating that perfect evenness reduced the resilience of the forest. Conclusion: A combination of climate, topographic variables and disturbance indicators controlled the stability of the dry forest. Tree diversity is an important component that should be considered in the management and restoration programs of such degraded forests. If local disturbances are alleviated the recovery time of dryland forests could be shortened, which is vital to maintain the ecosystem services these forests provide to local communities and global climate change.