The violation of Leggett-Garg type inequalities (LGtIs) is studied on a two level atom, driven by an external field in the presence of a squeezed thermal reservoir. The violations are observed in the underdamped regime where the spontaneous transition rate is much smaller compared to the Rabi frequency. Increase in thermal effects is found to decrease the extent of violation as well as the time over which the violation lasts. With increase in the value squeezing parameter the extent of violation of LGtIs is seen to reduce. The violation of LGtIs is favored by increase in the driving frequency. Further, the interplay of the degree of violation and strength of the measurements is studied. It is found that the maximum violation occurs for ideal projective measurements.