Abstract. The impact of drought on environmental flow (EF) in 27 catchments of the Indus Basin is studied from 1980–2018 using indicators of hydrologic alterations (IHAs). The standardized precipitation evapotranspiration index (SPEI) was systematically propagated from one catchment to another using principal component analysis (PCA). Threshold regression is used to determine the severity of drought (scenario 1, drought severity that causes low flows) and the month (scenario 2, months where drought has resulted in low flows) that trigger low flows in the Indus Basin. The impact of drought on low EFs is quantified using range of variability analysis (RVA), which is an integrated component of the IHA used to study the hydrological alterations in environmental flow components (EFCs) by comparing the pre- and post-impact periods of human and/or climate interventions in EFCs. The hydrological alteration factor (HAF) is calculated for each catchment in the Indus Basin. The results show that most of the catchments were vulnerable to drought during the periods of 1984 to 1986, 1991/1992, 1997 to 2003, 2007 to 2008, 2012 to 2013, and 2017 to 2018. On a longer timescale (SPEI-12), drought is more severe in the lower Indus Basin (LIB) than in the upper Indus Basin (UIB). The IHA pointed out that drought significantly impacts the distribution of EFCs, particularly extremely low flow (ELF) and low flow (LF). The magnitude and frequency of the ELF and LF events increase as drought severity increases. The threshold regression provided useful insights, indicating that moderate drought can trigger ELF and LF at shorter timescales (SPEI-1 and SPEI-6) in the UIB and middle Indus Basin (MIB). Conversely, severe and extreme droughts trigger ELF and LF at longer timescales (SPEI-12) in the LIB. The threshold regression also divided the entire study period (1980–2018) into different time periods (scenario 2), which is useful for quantifying the impact of drought on low EFs using the SPEI coefficient. Higher SPEI coefficients are observed in the LIB, indicating high alterations in EF due to drought. HAF showed high alterations in EF in most of the catchments throughout the year except in August and September. Overall, this study provided useful insights for analysing the effects of drought on EF, especially during low flows.