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This study provides a comprehensive overview of Phase I of the deforestation dryland alert system. It focuses on its operation and outcomes from 2020 to 2022 in the Caatinga biome, a unique Brazilian dryland ecosystem. The primary objectives were to analyze deforestation dynamics, identify areas with highest deforestation rates, and determine regions that require prioritization for anti-deforestation efforts and conservation actions. The research methodology involved utilizing remote sensing data, including Landsat imagery, processed through the Google Earth Engine platform. The data were analyzed using spectral unmixing, adjusted Normalized Difference Fraction Index, and harmonic time series models to generate monthly deforestation alerts. The findings reveal a significant increase in deforestation alerts and deforested areas over the study period, with a 148% rise in alerts from 2020 to 2022. The Caatinga biome was identified as the second highest in detected deforestation alerts in Brazil in 2022, accounting for 18.4% of total alerts. Hexagonal assessments illustrate diverse vegetation cover and alert distribution, enabling targeted conservation efforts. The Bivariate Choropleth Map demonstrates the nuanced relationship between alert and vegetation cover, guiding prioritization for deforestation control and native vegetation restoration. The analysis also highlighted the spatial heterogeneity of deforestation, with most deforestation events occurring in small patches, averaging 10.9 ha. The study concludes that while the dryland alert system (SAD-Caatinga—Phase I) has effectively detected deforestation, ongoing challenges such as cloud cover, seasonality, and more frequent and precise monitoring persist. The implementation of DDAS plays a critical role in sustainable forestry by enabling the prompt detection of deforestation, which supports targeted interventions, helps contain the process, and provides decision makers with early insights to distinguish between legal and illegal practices. These capabilities inform decision-making processes and promote sustainable forest management in dryland ecosystems. Future improvements, including using higher-resolution imagery and artificial intelligence for validation, are essential to detect smaller deforestation alerts, reduce manual efforts, and support sustainable dryland management in the Caatinga biome. [ABSTRACT FROM AUTHOR]