Wildfires are a major concern around the globe because of the immediate impact they have on people's lives, local ecosystems, and the environment. Soil moisture is one of the most important factors that influence wildfire occurrences and spread. However, it is also one of the most challenging hydrological variables to measure routinely and accurately. Therefore, soil moisture is significantly underutilized in operational wildfire risk applications. Thus, the aim here is to use a well-established operational soil moisture product to isolate the soil moisture-fire relationship and assess the utility of using soil moisture as a leading indicator of potential fire risk. We evaluated the value of remotely-sensed soil moisture observations from the soil moisture active passive sensor for monitoring and predicting fire risk in Australia and California. We quantified the relationship between observed fire activity and soil moisture conditions and analyzed the soil moisture conditions for two extreme fire events. Our findings show that fire activity is strongly associated with soil moisture anomalies. Lagged correlation analysis demonstrated that a remote-sensing based soil moisture product could predict fire activity with a 1–2 month lead-time. Soil moisture anomalies consistently decreased in the months preceding fire occurrence, often from normal to drier conditions, according to a spatiotemporal analysis of soil moisture in two extreme fire events. Overall, our findings indicate that soil moisture conditions prior to large wildfires can aid in their prediction and operational satellite-based soil moisture products such as the one used here have real value for supporting wildfire susceptibility and impacts.