Satellite remote sensing has been used in forest health management as a method for vegetation mapping, fire fuel mapping, fire risk estimation, fire detection, post-fire severity mapping, insect infestation mapping, and relative water stress monitoring. This paper reviews the use of satellite remote sensing in forest health studies, including current research activities; the satellite sensors, methods, and parameters used; and their accuracy. The review concludes that the Moderate Resolution Imaging Spectroradiometer satellite data (MODIS) are more appropriate for most of the remote sensing applications for forest health than other current satellite data when considering temporal and spatial resolutions, cost, and bands. MODIS has a 1-2 day temporal and a 250-1000 m spatial resolution; the data are free and cover more spectral bands than other satellites (up to 36 bands). We recommend that physical and physiological modeling (e.g., evapotranspiration and biomass growth) be developed for remote sensing of forest health. Some additional satellite sensors, such as for high temperature estimates (as high as 1800 K) and sensors of narrow bands, are also needed.