Deforestation remains one of the most pressing environmental challenges, significantly impacting ecosystems, biodiversity, and climate stability. This paper proposes the development of an Environmental Damage Assessment System (EDAS) that utilizes advanced Artificial Intelligence (AI) and Machine Learning (ML) algorithms to process satellite imagery for deforestation monitoring. The system identifies trends, forecasts potential risks, and provides actionable insights to support sustainable forest management. EDAS serves as a valuable tool for policymakers, researchers, and conservationists aiming to mitigate environmental degradation. One of EDAS's key strengths is its ability to forecast areas at high risk of deforestation by analyzing historical imagery data. This enables timely interventions and effective conservation planning by policymakers and environmental organizations. Overall, EDAS serves as a valuable tool for understanding the broader environmental impacts of deforestation, supporting data-driven decisions for sustainable forest management.