Forest Canopy Density is a dynamic process mediated by various natural and anthropogenic factors. It can be changed over time and locations in the same forest type and landscape. However, human dimensions are considered as the primary force of landscape change and subsequent forest canopy loss in tropical regions of the world. Many studies have been indicated that roads have a far greater impact on forests than simply allowing access for human use. Similarly, rivers have been used as means of transportation, hence illegal logging and felling further deplete forest canopy density. The main objective of this study was to investigate the spatio-temporal dynamic alterations of Forest Canopy Density (FCD) across with site associated factors such as biophysical, physical and human interferences in tropical region of Nepal from 1988 to 2001. Landsat TM and ETM+ of 1988 and 2001 were used to assess the spatial and temporal dynamic alterations of FCD. This analysis revealed that distance to human settlements at P=<0.01, rivers, human interferences (path and fire) and species composition had a statistically significance at P=<0.05 level. However, other factors did not show any significant relation. So, we concluded that understanding of dynamic alterations of FCD with respect to factors was quite complex phenomena. Other surrounding environment could also playa significant role. A comprehensive analysis could be required to understand such complexities. Therefore, additional factors such as climatic, biophysical, social, and institutional with respect to spatio-temporal variability should be considered for the better understanding of canopy dynamic.