The Amazon rainforest plays a crucial role in regulating Earth’s energy and water cycles. The full biophysical impact of deforestation, particularly when mediated by clouds, remains elusive. Using two decades of multi-source satellite observations, we isolate biophysical signals of forest loss and present an observation of the all-sky biophysical feedback that integrates surface and atmospheric effects. We find that top-of-atmosphere (TOA) cooling in shortwave and longwave fluxes scales with forest loss fraction, with shortwave dominating. In high-loss areas, shortwave TOA cooling reaches 6.8 ± 0.6 W m−2, with cloud-driven albedo increases doubling the effect relative to surface-brightening alone. These findings underscore the importance of cloud responses in estimating the climatic impact of forest cover change and support their integration into climate models and land-management policies.