Forest fire has been regarded as one of the major causes of degradation of Himalayan forests in Uttarakhand. Forest fires occur annually in more than 50% of forests in Uttarakhand state, mostly due to anthropogenic activities and spreads due to moisture conditions and type of forest fuels. Empirical drought indices such as Keetch–Byram drought index, the Nesterov index, Modified Nesterov index, the Zhdanko index which belongs to the cumulative type and the Angstrom Index which belongs to the daily type have been used throughout the world to assess the potential fire danger. In this study, the forest fire danger index has been developed from slightly modified Nesterov index, fuel and anthropogenic activities. Datasets such as MODIS TERRA Land Surface Temperature and emissivity (MOD11A1), MODIS AQUA Atmospheric profile product (MYD07) have been used to determine the dew point temperature and land surface temperature. Precipitation coefficient has been computed from Tropical Rainfall measuring Mission (TRMM) product (3B42RT). Nesterov index has been slightly modified according to the Indian context and computed using land surface temperature, dew point temperature and precipitation coefficient. Fuel type danger index has been derived from forest type map of ISRO based on historical fire location information and disturbance danger index has been derived from disturbance map of ISRO. Finally, forest fire danger index has been developed from the above mentioned indices and MODIS Thermal anomaly product (MOD14) has been used for validating the forest fire danger index.