Analysis of pest impact assessment using remote sensing is based on that pest infestation change the photosynthesis and physical structure in plants, which in term alter the absorption and reflectance property of plant in electromagnetic spectrum. Productivity of cotton crop grown in India is at risk due to the incidence of new emerging pests, especially after introduction of BT cotton varieties. Crop losses due to new pests like mealybug can be substantial and may be prevented, or reduced, by crop protection measures. An attempt has been made on identification of probable hot spots of mealybug concentration zones in cotton crop. A methodology is developed for estimation of pest affected areas using two years Indian Remote Sensing and MODIS satellite data and ground measured severity index of the pest concentration. The pest severity index seems to have high correlation with the satellite derived index which can be used to locate the severely affected zones in the district so that correction measures can be taken up in a more concentrated effort and for effective pest management of the crop.