The boreal-alpine ecotone is distinguished by abrupt vegetation shifts along short altitudinal gradients, with climate warming driving treeline shifts upwards and northwards. In this study, we examine the hypothesis that distinct vegetation types present within this ecotone exhibit significant differences in surface–subsurface temperature regimes, as well as in soil moisture levels. This was done by measuring subsurface, surface and above-surface temperatures and soil moisture along a boreal-alpine ecotone during the growing season at Dagalifjell, southern Norway, for four different vegetation types: 1) pine-dominated coniferous forest, 2) mountain birch-dominated forest line, 3) shrubland and 4) lichen heath. Furthermore, the one-dimensional version of the Spatial Forest Hydrology (SpaFHy) model was employed to explore the potential of simulating soil moisture dynamics for typical boreal-alpine vegetation using openly available remote sensing data. The results revealed a decline in subsurface temperatures along the elevation-dependent vegetation gradient from coniferous forest (7.47 ± 0.66 °C) to lichen heath (5.56 ± 0.68 °C), with statistically significant differences (p