Drought poses a significant threat to the Tekeze Watershed in Northern Ethiopia, affecting both agrometeorological conditions and the socio-economic well-being of the region. This thesis aims to comprehensively examine the severity and extent of drought occurrences in the watershed by employing geospatial techniques, remote sensing data, and socio-economic surveys.The main objective of the research is to assess the impacts of drought on the environment and local communities, and to provide a foundation for the development of effective mitigation and adaptation strategies. This research utilizes data from various sources, including MODIS NDVI and EVI, CHIRPS rainfall, station rainfall, surveys, interviews, observations, and crop yield data. By integrating meteorological drought analysis, agricultural drought assessment, and socio-economic surveys, this study seeks to shed light on the causes, consequences, and coping mechanisms related to drought in the Tekeze Watershed. Meteorological drought analysis using theSPI and PNI identified multiple drought years, including 2004, 2005, 2008, 2009, 2011, 2013-2016, 2019,and 2021-2023, with a recurrence period of approximately 2 years. The CHIRPS dataset exhibited goodcorrelation and agreement with ground-based rainfall observations. Agricultural drought assessment based on the NDVI, VCI, and EVI confirmed deteriorating vegetation health and crop yields during drought episodes, especially in 2004, 2009, 2010, 2014, 2015, 2017, 2021, and 2022. The drought indices were validated through analysis of their relationship with crop yield data, with the random forest regression model outperforming linear regression. Climate variability, land use changes, and poor water management were identified as primary causes of drought, leading to severe consequences such as crop failure, food insecurity, and loss of livelihoods, livestock deaths, increased poverty, and displacement. Respondents highlighted escalating drought frequency and severity, with the most severe years mentioned as 2003-2005, 2008-2009,2012-2013, 2015-2016, and 2021-2023. Communities employed various coping strategies, including livelihood diversification, reduced food consumption, asset selling, and reliance on community support. However, existing assistance programs were often insufficient to mitigate the extensive impacts of drought. In conclusion, the recurrent occurrence of drought in the Tekeze Watershed emphasizes the need for comprehensive strategies integrating climate resilience, sustainable land management, and socio-economicsupport. Recommendations include strengthening early warning systems, promoting sustainable water resource management, enhancing agricultural resilience, and improving socio-economic supportinterventions. By implementing these recommendations, the Tekeze Watershed can mitigate the severe impacts of drought on the environment and local communities, fostering a more resilient and sustainable future.