Drought is the most complex but least understood of all natural hazards. Major foodrnproduction in Ethiopia, especially in the Amhara Region, North Wollo Zone, is almost fullyrndependent on rain-fed agriculture and the area is often hit by periodic droughts. Thisrndrought causes serious economic, social, food security and environmental problems. Aridrnclimatic conditions in North Wollo Zone are characterized by erratic rainfall and successiverndrought years together with high rate of moisture deficiency has adversely affected thernagricultural production levels. Thereby increases drought risk. In this study, thernStandardized Precipitation Evaporation Index (SPEI), Normalized Difference VegetationrnIndex (NDVI) and Vegetation Condition Index (VCI), were applied to characterize thernagricultural drought conditions in North Wollo Zone from 2000 to 2015. Correlationrnanalysis was performed between NDVI and SPEI, rainfall and NDVI, VCI and rainfall andrnNDVI and Crop Yield Anomaly and SPEI and Crop Yield Anomaly. SPEI values wererninterpolated to get the spatial pattern of meteorological based drought. Ground based croprnyield data was used to evaluate the drought monitoring index. Finally, the combined droughtrnseverity map was generated by overlaying the agricultural and meteorological droughtrnseverity maps. The results showed that there was good correlation between rainfall andrnNDVI (r=0.71), VCI and Rainfall (r = 0.77), NDVI and SPEI (r=0.82) and NDVI and CroprnYield anomaly, (r=0.78) and SPEI and Crop Yield Anomaly (r=8.3). Analysis result ofrnSpatial pattern of long term seasonal average rainfall and NDVI from 2000 to 2015 years,rnshowed that there was a large variation during the main cropping season and therncorresponding NDV1 values was also almost similar. The minimum and maximum rainfallrnobserved during this period was found to be 250 to 599 mm where it indicates a largernvariation in distribution of rainfall in all the weather stations. This might be the effect ofrnaltitude among other factors. The drought severity was analyzed from 2000 to 2015 based onrnsatellite and climate data. The two years 2005 and 2015 were considered as drought yearsrnand 2009 and 2013 were taken as slight-drought years. The extent of drought severity wasrnincreased by increasing time scale. The combined risk map showed that approximately 5% ofrnthe area has slight risk, 42.5 % of the area faced by very severe risk, 19.5 % of the arearnconsidered as moderate risk and 33 % area face severe risk within the study area. It can bernseen severe drought year from 2000 to 2015 because it has received low rainfall at 2005rnand 2015. Hence, it is concluded that, the study area was affected by severe drought in yearrn2005 and 2015 and slight drought in 2009 and 2013 and the drought monitoring indicesrnresults almost similar with ground truth data result of crop yield. Drought from socioeconomicrnaspect has not been studied. Besides, delineating areas under drought riskrnrelevancy of risk assessment can be made more meaningful when the human population asrnwell as livestock population under risk will be assessed. Therefore, it is recommended torninclude the socio-economic data to better understand the vulnerability factors.rnKeywords: Agricultural drought, Meteorological drought, SPOT, NDVI and SPEI