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In this paper, we evaluate the impact of changing land use/land cover (LULC) on the hydrological processes in Dal lake catchment of Kashmir Himalayas by integrating remote sensing, simulation modelling and extensive field observations. Over the years, various anthropogenic pressures in the lake catchment have significantly altered the land system, impairing, inter-alia, sustained biotic communities and water quality of the lake. The primary objective of this paper was to help a better understanding of the LULC change, its driving forces and the overall impact on the hydrological response patterns. Multi-sensor and multi-temporal satellite data for 1992 and 2005 was used for determining the spatio-temporal dynamics of the lake catchment. Geographic Information System (GIS) based simulation model namely Generalized Watershed Loading Function (GWLF) was used to model the hydrological processes under the LULC conditions. We discuss spatio-temporal variations in LULC and identify factors contributing to these variations and analyze the corresponding impacts of the change on the hydrological processes like runoff, erosion and sedimentation. The simulated results on the hydrological responses reveal that depletion of the vegetation cover in the study area and increase in impervious and bare surface cover due to anthropogenic interventions are the primary reasons for the increased runoff, erosion and sediment discharges in the Dal lake catchment. This study concludes that LULC change in the catchment is a major concern that has disrupted the ecological stability and functioning of the Dal lake ecosystem.