The natural and man-made landscape settings in the Khyber Pakhtunkhwa (KPK) province of Northern Pakistan have significantly changed in the last decade due to increasing demands of urbanized populace, migration, two major natural disasters, and climate change. The aim of this study is to analyze land possession, income and land-use diversification of KPK administered Charsadda district. Field data is collected through a sample survey. Furthermore, freely available Landsat 7 satellite images are used to classify land-use classes (e.g., vegetation, built-up) for two different years (e.g., 2005 and 2017) for cross-verification and comparison. The highest 45% of 80% land-owners occupy land-area between 1–10 hectares. Annually, the highest 57.5% of the total farmers / employed in-habitants of surveyed regions earn more than Rs. 100,000 or ~$970 from agriculture activities. About 41.9% land-area covered by agricultural-land is transformed into built-up area since 2007, which is attributed to the increasing demand for buildings and commercial markets. The highest diversification is reported in Naguman area of Charsadda district followed by Rajjar and Niami. Population growth and huge migration of displaced persons from neighboring tribal areas are likely to be few factors which contributed to such a drastic change in land-use pattern since 2007 to 2017. Urgent attention of the policy makers, agricultural experts and society is required to minimize land degradation and to thwart further agricultural-land loss.