At least 40,000 deaths have been attributed to historic lahars (volcanic mudflows). The most recent lahar disaster occurred in 1998 at Casita volcano, Nicaragua, claiming over 2,500 lives. Lahars can cover large areas and be highly destructive, and constitute a challenge for disaster management. With infrastructure affected and access frequently impeded, disaster management can benefit from the synoptic coverage provided by satellite imagery. This potential has been recognisedfor other types of natural disasters, but limitations are also known. Dedicated satellite constellations for disaster response and management have been proposed as one solution. Here we investigate the utility of currently available and forthcoming optical and radar sensors as tools in lahar disaster management. Applied to the Casita case, we find that imagery available at the time could not have significantly improved disaster response. However, forthcoming satellites, especially radar, will improve the situation, reducing the benefit of dedicated constellations.