In cold regions where soils freeze and thaw annually, the ground surface deforms due to the density difference between groundwater and ground ice. Here we mapped thaw subsidence and frost heave signals over the Toolik Lake area on the North Slope of Alaska using 12 ALOS PALSAR Interferometric Synthetic Aperture Radar (InSAR) scenes (2006–2010). For the first time, we jointly analyzed InSAR observations with a large number of soil measurements collected within ~ 100 km of the Toolik Field Station. We found that the InSAR-observed deformation patterns are mainly related to soil water content and the seasonal active layer freeze-thaw (FT) cycle. We did not observe any substantial long-term subsidence trend outside the 2007 Anaktuvuk River Fire scar. This suggests that the magnitude of the maximum annual thaw subsidence did not change much outside the fire zone during the study period. The joint analysis of InSAR and field observations allows us to show that the amplitude of the seasonal thaw subsidence is proportional to the total amount of ice that has melted into liquid water at any given time. We note that topography influences the spatial distribution of soil water content, and the availability of soil water influences the type of vegetation that can grow. As a result, we found that the average seasonal thaw subsidence increases along a geomorphic-ecohydrologic transect with heath vegetation on the drier ridgetops, tussock tundra on hillslopes, and sedge tundra at the wet lowland riparian zones. In addition, we detected a net uplift between late July and early September, mostly in the wetter riparian zone that experienced a larger seasonal thaw subsidence. Toolik Field Station in-situ records suggest that the air temperature fluctuated around or below freezing in early September during the ALOS PALSAR data acquisition times (at ~ 12 am local time). In this scenario, ice can be formed at the top of the soil, which leads to frost heave in saturated soils. Our results highlight how InSAR can improve our understanding of active layer freeze-thaw and water storage dynamics in permafrost environments.