Urbanization in Pakistan is increasing at 3% annually, the highest in South Asia. 50% of the population is expected to urbanize by 2025. The capital city of Pakistan, Islamabad has experienced phenomenal increase in the urban population and extent in the last four decades. The aim of this research was to analyze the urban sprawl of Islamabad and changes in the Land Use and Land Cover (LULC), with the help of satellite images. LULC statics were extracted from Landsat Multi-Spectral Scanner (MSS), Thematic Mapper (TM), Enhanced Thematic Mapper Plus (ETM+) and Operational Land Imager (OLI) images, for the years 1979, 1989, 1999, 2008 and 2019. There is an increase of 377 sq. km in built-up areas and slight increase of 47 sq km in the agriculture land. The forest cover has been reduced by 83 sq km and the water bodies have also reduced. The barren land has experienced an unprecedented decrease of 333 sq km in the meanwhile. The master plan is under revision to regularize such uncontrolled constructions and accommodate the increased demand. The city, as a result, has been facing issues of water supply, sanitation, transportation etc. This has seriously jeopardized the master plan of the city.