Droughts are considered to be one of the major natural hazards causing destructive impact on the environment as well as the economy of countries throughout the world. Drought being attributed to weather conditions cannot be monitored by weather data alone, strictly because these data are most likely to be ill-timed, infrequent and incomplete. Low rainfall has mainly caused droughts and subsequently reduction in agricultural production. Impacts of droughts constitute environmental destruction, economic damage human suffering and loss of lives. Droughts have been a recurring feature of the Indian climate therefore study of historical droughts may help in the delineation of major areas facing drought risk and thereby management plans can be formulated by the government authorities to cope with the disastrous effects of this hazard. In recent years, Remote Sensing (RS) and Geographic Information System (GIS) have played a remarkable role in assessment of various types of hazards either natural or man-made. Some of the most preferred indices are the Normalized Difference Vegetation Index (NDVI), Vegetation Condition Index (VCI), and Temperature Condition Index (TCI). Normalized Difference Vegetation Index (NDVI) data are utilized as the primary spectral indicator for monitoring vegetation health and Land Surface Temperature (LST) data, which are important since the surface temperature is sensitive to the drought events, were derived from the thermal channels of satellites. By the aid of these data sets, satellitebased drought indices such as the Drought Severity Index (DEVNDVI), the Vegetation Anomaly Index (VAI) and the Vegetation Condition Index (VCI), the Temperature Condition Index (TCI) and the Vegetation Health Index (VHI) have been applied and analyzed for the research area. According to the results achieved, these indices can be provided for near real-time drought monitoring at appropriate spatial and temporal resolution.