Abstract This study examines the effects of land-use (LU) change on regional climate, comparing historical and future scenarios using seven climate models from phase 6 of Coupled Model Intercomparison Project–Land Use Model Intercomparison Project experiments. LU changes are evaluated relative to land-use conditions during the preindustrial climate. Using the Community Earth System Model, version 2–Large Ensemble (CESM2-LE) experiment, we distinguish LU impacts from natural climate variability. We assess LU impact locally by comparing the impacts of climate change in neighboring areas with and without LU changes. Further, we conduct CESM2 experiments with and without LU changes to investigate LU-related climate processes. A multimodel analysis reveals a shift in LU-induced climate impacts, from cooling in the past to warming in the future climate across midlatitude regions. For instance, in North America, LU’s effect on air temperature changes from −0.24° ± 0.18°C historically to 0.62° ± 0.27°C in the future during the boreal summer. The CESM2-LE shows a decrease in LU-driven cooling from −0.92° ± 0.09°C in the past to −0.09° ± 0.09°C in future boreal summers in North America. A hydroclimatic perspective linking LU and climate feedback indicates LU changes causing soil moisture drying in the midlatitude regions. This contrasts with hydrology-only views showing wetter soil conditions due to LU changes. Furthermore, global warming causes widespread drying of soil moisture across various regions. Midlatitude regions shift from a historically wet regime to a water-limited transitional regime in the future climate. This results in reduced evapotranspiration, weakening LU-driven cooling in future climate projections. A strong linear relationship exists between soil moisture and evaporative fraction in midlatitudes. Significance Statement Land–atmosphere feedback involving soil moisture can increase local temperature and affect how land-use (LU) change impacts manifest in a warming climate. Conversely, an increased surface reflectance due to LU change can decrease local temperature in the midlatitude regions. Further, the LU change signal is often mixed with the internal climate variability, making it harder to separate. This study uses a novel technique to separate LU change impact from other climate forcing in the latest generation of climate and Earth system models. In the future climate, soil moisture drying lessens the cooling impact. A large-ensemble climate experiment analysis confirms a significant weakening of the LU-driven cooling impact in the midlatitudes. Both LU and climate changes exacerbate soil moisture drying, leading to a shift toward a water-limited system where hydrological feedback becomes more influential than radiative feedback.