Malegaon district has witnessed rapid urban growth over the past three decades, which has resulted in vast ecological and environmental issues, both in urban and peri-urban areas. This study proposes a quantitative method of land use change studies in Malegaon district, focusing on the changes in urban agglomeration, population, land use and land cover; and its correlation with the population increase, migration and urbanization led problems related with water and environmental degradation. Digital image processing of satellite images has been used as a main tool and the morphological growth was based on the analysis of satellite image series (3 different dates, with time intervals between them). Images were preprocessed (atmospheric and geometric corrections) and classified according to the major land use like urban, agriculture, forest and water. The present study revealed an increase in settlement by 78% from 1989 to 2006 and an increase by 26% from 2006 to 2008, along with the increase in population, migration from rural areas owing to the economical growth and technological advantages associated with urbanization.