The Nisyros Volcano (Greece) was monitored by satellite and ground thermal imaging during the period 2000–2002. Three night-scheduled Landsat-7 ETM+ thermal (band 6) images of Nisyros Island were processed to obtain land surface temperature. Ground temperature data were also collected during one of the satellite overpasses. Processed results involving orthorectification and 3-D atmospheric correction clearly show the existence of a thermal anomaly inside the Nisyros Caldera. This anomaly is associated mainly with the largest hydrothermal craters and has land surface temperatures 5–10 °C warmer than its surroundings. The ground temperature generally increased by about 4 °C inside the main crater over the period 2000–2002. Ground thermal images of the hydrothermal Stephanos Crater were also collected in 2002 using a portable thermal infrared camera. These images were calibrated to ground temperature data and orthorectified. A difference of about 0–2 °C was observed between the ground thermal images and the ground temperature data. The overall study demonstrates that satellite remote sensing of low-temperature fumarolic fields within calderas can provide a reliable long-term monitoring tool of dormant volcanoes that have the potential to reactivate. Similarly, a portable thermo-imager can easily be deployed for real-time monitoring using telemetric data transfer. The operational costs for both systems are relatively low for an early warning system.