The present work is an attempt to qualitatively assess forest density losses very rapidly over a comparatively large area. This study unravels the forest density loss rates of forest compartments in district budgam, central Kashmir between 1992 and 2008, wherein forest compartments are grouped based on the emergency of forest conservation required. Satellite remote sensing and GIS technology has been used in this study for land use/land cover inventorization. Methodology consisted of using visual image interpretation and vector GIS overlay analysis. The data sets used were Landsat TM-1992 and IRS-LISS III-2008. Forest density classification was performed using Forest survey of India (FSI) classification scheme. In order to analyze forest density losses within forest compartments, vector GIS overlay analysis of forest class theme-1992, forest class theme-2008 and forest compartment boundary was performed. The resultant overlaid theme was analyzed for forest density change between 1992 and 2008.The highest percent forest density loss was observed in Danizar (90.60%) followed by Nilnag (90.24%), Sangarwain (87.48%), Nagabal (81.24%), Doodhganga (69.04%), Yus (41.55%), Guravet (27.17% ), Brenwar (25.70%), Kachwari (23.05%), Handpathar (15.36%), and Nambian (1.13%).On the basis of percent forest density loss status of forest compartments a protective cum conservative prioritization grouping was performed wherein those compartments which have degraded more than 30 % were grouped into highest priority status compartments. As for as the immediateness of the protection cum conservation is required, it was concluded that Yus, Doodhganga, Nagabal, Sangarwain, Nilnag and Danizar fall in the highest priority group while as Nambian, Handpathar, Kachwari, Brenwar and Guravet fall in the least priority group. This study provides a methodology to quickly assess forest density loss rates and an effective approach for forest conservation and protection strategy using satellite remote sensing and GIS technology.