Gelephu, located in the Himalayan region, has experienced one of the strongest development activities due to the suitable topography and geographic location, which has led to rapid urbanization. The main objective of the study is to perform land use land cover (LULC) mapping for Gelephu for 2016 and 2023 by a Random Forest (RF) classifier, using the Semi-automatic Classification Plugin (SCP) in QGIS and identify LULC changes. Furthermore, the study assessed the vegetation change dynamics within the study area by analysing the Normalized Difference Vegetation Index (NDVI) for 2016 and 2023. Additionally, the study characterized the resulting LULC change for Gelephu Thromde, a sub-administrative municipal entity, as a result of the notable intensity of the infrastructure development activities. The current study used a framework to collect Sentiniel-2 satellite data, which was then used for pre- and post-processing to create LULC and NDVI maps. The classification model achieved high accuracy, with an area under the curve (AUC) of up to 0.89. The corresponding LULC and NDVI statistics were analysed to determine the current status of the LULC and vegetation indices, respectively. The LULC change analysis reveals urban growth of 5.65% and 15.05% for Gelephu and Gelephu Thromde, respectively. The NDVI assessment shows significant deterioration in vegetation health with a 75.11% loss of healthy vegetation in Gelephu between 2016 and 2023. This research provides the first version of LULC and NDVI maps of Gelephu. The analysis results indicate possible future implications on sustainable development management in Gelephu Bhutan.