In this review paper we present geographical, ecological and historical aspects of Southeast Asia from the perspective of forest degradation monitoring and critically discuss available approaches for large area forest degradation monitoring with satellite remote sensing data at high to medium spatial resolution (5–30 m). Several authors have achieved promising results in geographically limited areas within Southeast Asia using automated detection algorithms. However, the application of automated methods to large area assessments remains a major challenge. To-date, nearly all large area assessments of forest degradation in the region have included a strong visual interpretation component. We conclude that due to the variety of forest types and forest disturbance levels, as well as the variable image acquisition conditions in Southeast Asia, it is unlikely that forest degradation monitoring can be conducted throughout the region using a single automated approach with currently available remote sensing data. The provision of regionally consistent information on forest degradation from satellite remote sensing data remains therefore challenging. However, the expected increase in observation frequency in the near future (due to Landsat 8 and Sentinel-2 satellites) may lead to the desired improvement in data availability and enable consistent and robust regional forest degradation monitoring in Southeast Asia.