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Forests in Germany cover around 11.4 million hectares and, thus, a share of 32% of Germany’s surface area. Therefore, forests shape the character of the country’s cultural landscape. Germany’s forests fulfil a variety of functions for nature and society, and also play an important role in the context of climate levelling. Climate change, manifested via rising temperatures and current weather extremes, has a negative impact on the health and development of forests. Within the last five years, severe storms, extreme drought, and heat waves, and the subsequent mass reproduction of bark beetles have all seriously affected Germany’s forests. Facing the current dramatic extent of forest damage and the emerging long-term consequences, the effort to preserve forests in Germany, along with their diversity and productivity, is an indispensable task for the government. Several German ministries have and plan to initiate measures supporting forest health. Quantitative data is one means for sound decision-making to ensure the monitoring of the forest and to improve the monitoring of forest damage. In addition to existing forest monitoring systems, such as the federal forest inventory, the national crown condition survey, and the national forest soil inventory, systematic surveys of forest condition and vulnerability at the national scale can be expanded with the help of a satellite-based earth observation. In this review, we analysed and categorized all research studies published in the last 20 years that focus on the remote sensing of forests in Germany. For this study, 166 citation indexed research publications have been thoroughly analysed with respect to publication frequency, location of studies undertaken, spatial and temporal scale, coverage of the studies, satellite sensors employed, thematic foci of the studies, and overall outcomes, allowing us to identify major research and geoinformation product gaps.