This study has been carried out in th Mamlay watershed of South Sikkim using the satellite data from indigenous earth resources satellites IRS 1 A/ 1B. The temporal changes have been analysed over the years 1988 and 1992. This set of multidate satellite data yielded spatial changes in land - use classes. The percentage variation at level I within significant classes were- Agricultural land by 52.5%, Forest land by - 10.9%, Wasteland by 10.64% and Water bodies by - 10.45%. The details of sub- classes at level II have also been worked out and presented. The scope of this study is outlined as an aid to the development of watershed management options.