The study sheds light on the impact of urbanization on fragile ecosystems such as the western Himalayas. We use Haldwani in Uttarakhand as an example of human encroachment and loss of ecosystem services. Several environmental parameters such as Nighttime light (NTL), Land Surface Temperatures (LSTs), Aerosol Optical Depth (AOD) and forest cover are used based on satellite imagery to allow a bidecadal comparison (between 2000 and 2020) of the status of these parameters for the city based on these parameters shows a decline in ecosystem services. Significant statistical differences for LSTs and AOD (p < 0.001) can be found in the bidecadal comparison. Furthermore, a strong negative correlation was found between LST-NDVI (r = -0.69) and between NTL-NDVI (r = -0.58) in earlier and last decade intervals. In addition, long-term multi-spectral satellite imagery also shows a decline in tree cover in the reserved forest. Therefore, focusing on ecosystem services related to tree cover in reserved forest areas, particularly in the Indian Himalayan Region (IHR) must be part of a broader action plan to address these issues to further protect fragile Himalayan ecosystems.