Increasing demand for groundwater for agricultural and industrial needs puts pressure on the water table, especially in arid and semiarid climates. In the Kabudar Ahang plain, in Hamedan province, groundwater overexploitation for agricultural and industrial application has increased significantly over recent decades. The InSAR technique is used to monitor the subsidence induced by groundwater overexploitation in the Kabudar Ahang plain from 2003 to 2010. For this purpose, three different Envisat tracks are used. Interferogram stacking and time-series analysis are performed to study the short-term and long-term behavior of the subsidence. Interferogram time-series analysis from 2003 to 2006 estimates an average subsidence of 19 cm per year with a maximum of 25 cm. The maximum rate of 27 and 28 cm per year is estimated from interferogram stacking in 2004 to 2005 and 2007 to 2010, respectively. The results are further compared with the geological and hydrological information to investigate the relation between the subsidence and groundwater level variations. A high correlation is found in areas affected by subsidence and the rate of water level drop in 10 piezometric wells. The results show that a large part of the plain subsides, mostly in the south and southeast where the aquifer is thicker and in the areas with the highest water table dropdown of about 100 m. With the continued use of groundwater resources, subsidence is another hazard in this plain in addition to the sinkholes.