The need to evaluate global climate data has increased in recent times. In this study, we evaluate the ability of global precipitation products to monitor drought during three wet seasons (Belg/March–May, Kiremt/June–September and Autumn/September–November) and associated rainfall regions in Ethiopia. We employed statistical methods to quantify and evaluate precipitation products based on probability of drought detection (POD), the extent of false alarms (FAR) and the critical success index (CSI) to see the overall performance of the studied precipitation products. The majority of the studied precipitation datasets were relatively better in capturing the Autumn drought in southern Ethiopia, and 18 out of 21 precipitation products captured accurately more than 50% of observed droughts. The CSI scores for this season are also above 0.5 for 14 precipitation products. On the other hand, 15 and 14 precipitation products accurately captured more than 50% of the seasonal drought in Kiremt and Belg rainfall seasons in north‐eastern Ethiopia. In contrast, most precipitation products do not clearly represent the drought conditions of the Kiremt season in north‐western Ethiopia. Only 8 of the 21 precipitation products accurately captured more than 50% of the observed drought in this region, and only 6 precipitation products had a CSI score greater than 0.5. The results can facilitate the selection of precipitation products for drought monitoring purposes, for use in specific wet seasons and regions of Ethiopia.