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Spatial variabilities and drivers of land use and land cover (LULC) change over time and are crucial for determining the region’s economic viability and ecological functionality. The North-Western Himalayan (NWH) regions have witnessed drastic changes in LULC over the last 50 years, as a result of which their ecological diversity has been under significant threat. There is a need to understand how LULC change has taken place so that appropriate conservation measures can be taken well in advance to understand the implications of the current trends of changing LULC. This study has been carried out in the Baramulla district of the North-Western Himalayas to assess its current and future LULC changes and determine the drivers responsible for future policy decisions. Using Landsat 2000, 2010, and 2020 satellite imagery, we performed LULC classification of the study area using the maximum likelihood supervised classification. The land-use transition matrix, Markov chain model, and CA-Markov model were used to determine the spatial patterns and temporal variation of LULC for 2030. The CA-Markov model was first used to predict the land cover for 2020, which was then verified by the actual land cover of 2020 (Kappa coefficient of 0.81) for the model’s validation. After calibration and validation of the model, LULC was predicted for the year 2030. Between the years 2000 and 2020, it was found that horticulture, urbanization, and built-up areas increased, while snow cover, forest cover, agricultural land, and water bodies all decreased. The significant drivers of LULC changes were economic compulsions, climate variability, and increased human population. The analysis finding of the study highlighted that technical, financial, policy, or legislative initiatives are required to restore fragile NWH regions experiencing comparable consequences.