This study examines the complex interactions among soil moisture, evaporation, extreme weather events, and lightning, and their influence on fire activity across the extratropical and Pan-Arctic regions. Leveraging reanalysis and remote-sensing datasets from 2000 to 2020, we applied cross-correlation analysis, a modified Mann–Kendall trend test, and assessments of interannual variability to key variables including soil moisture, fire frequency and risk, evaporation, and lightning. Results indicate a significant increase in dry days (up to 40%) and heatwave events across Central Eurasia and Siberia (up to 50%) and Alaska (25%), when compared to the 1980–2000 baseline. Upward trends have been detected in evaporation across most of North America, consistent with soil moisture trends, while much of Eurasia exhibits declining soil moisture. Fire danger shows a strong positive correlation with evaporation north of 60° N (r ≈ 0.7, p ≤ 0.005), but a negative correlation in regions south of this latitude. These findings suggest that in mid-latitude ecosystems, fire activity is not solely driven by water stress or atmospheric dryness, highlighting the importance of region-specific surface–atmosphere interactions in shaping fire regimes. In North America, most fires occur in temperate grasslands, savannas, and shrublands (47%), whereas in Eurasia, approximately 55% of fires are concentrated in forests/taiga and temperate open biomes. The analysis also highlights that lightning-related fires are more prevalent in Eastern Europe and Southeastern Asia. In contrast, Western North America exhibits high fire incidence in temperate conifer forests despite relatively low lightning activity, indicating a dominant role of anthropogenic ignition. These findings underscore the importance of understanding land–atmosphere interactions in assessing fire risk. Integrating surface conditions, climate extremes, and ignition sources into fire prediction models is crucial for developing more effective wildfire prevention and management strategies.