A favorable environment can induce vegetation overgrowth to exceed the ecosystem carrying capacity, exacerbating water resource depletion and increasing the risk of lagged effects on vegetation degradation. This phenomenon is defined as structural overshoot, which can lead to large‐scale forest mortality and grassland deterioration. However, the current understanding of structural overshoot remains incomplete due to the complex time‐varying interactions between vegetation and climate. Here, we used a dynamic learning algorithm to decompose the contributions of vegetation and climate to drought occurrence, trace the connection between antecedent and concurrent vegetation dynamics, thus effectively capturing structural overshoot. This study focused on the climate‐sensitive hotspot in Northwest China drylands, where significant vegetation greening induced by a warming and wetting climate was detected during 1982–2015, leading to soil moisture deficit and aggravating vegetation degradation risks during droughts. We found that during this period, structural overshoot induced approximately 34.6% of the drought events, and lagged effects accounted for 16.7% of the vegetation degradation for these overshoot drought events. The occurrence of overshoot droughts exhibited an increasing trend over time, which was primarily driven by vegetation overgrowth followed by precipitation variation. Although the severity of overshoot and non‐overshoot droughts were generally comparable in spatial distribution, the impact of overshoot droughts is still becoming increasingly obvious. Our results indicate that the expected intensified overshoot droughts cannot be ignored and emphasize the necessity of sustainable agroecosystem management strategies.