A photothermographic material for blue light exposure that has a good coating surface condition and an image forming method for use with the photothermographic material are provided. The photothermographic material includes a support, and an image forming layer provided on at least one side of the support. The image forming layer contains at least a photosensitive silver halide, a non-photosensitive organic silver salt, a reducing agent and a binder. The photothermographic material is characterized in that: (1) a silver iodide content of the photosensitive silver halide is not less than 40 mole %; (2) the binder is a hydrophilic binder; (3) the image forming layer contains a silver iodide complexing agent; and (4) the image forming layer contains, as a silver carrier, at least one compound represented by the following Formula (I) or (II): ##STR00001## (wherein Q represents an atomic group that is necessary to form a 5 or 6-membered imide ring).