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The ability to measure the ecological effects of understory fire in the Amazon on a landscape scale remains a frontier in remote sensing. The Global Ecosystem Dynamics Investigation’s (GEDI) LiDAR data have been widely suggested as a critical new tool in this field. In this paper, we use the GEDI Simulator to quantify the nuanced effects of understory fire in the Amazon, and assess the ability of on-orbit GEDI data to do the same. While numerous ecological studies have used simulated GEDI data, on-orbit constraint may limit ecological inference. This is the first study that we are aware of that directly compares methods using simulated and on-orbit GEDI data. Simulated GEDI data showed that fire effects varied nonlinearly through the canopy and then moved upward with time since burn. Given that fire effects peaked in the mid-canopy and were often on the scale of 2 to 3 m in height difference, it is unlikely that on-orbit GEDI data will have the sensitivity to detect these same changes.