Abstract. The increasing rate of extreme events (Droughts and floods) and their rapid transition magnifies the associated socio-economic impacts than the individual event. Understanding of spatio-temporal evolution of wet-dry events collectively, their characteristics and transition (wet to dry and dry to wet) is therefore significant to identify and locate most vulnerable hotspots, providing the basis for the adaptation and mitigation measures. The Upper Jhelum Basin (UJB)-South Asia was selected as a case study, where the relevance of wet-dry events and their transition have not been assessed yet, despite of clear evidence of climate change in the region. The Standardized Precipitation Evapotranspiration Index (SPEI) at the monthly time scale was applied to detect and characterize wet and dry events for the period 1981–2014. The results of temporal variations of SPEI showed a strong change in basin climatic features associated with El Niño Southern Oscillation (ENSO) at the end of 1997, with the prevalence of wet and dry events before and after 1997 respectively. The results of spatial analysis show a higher susceptibility of the monsoon-dominated region towards wet events, with more intense events occurring in the eastern part, whereas a higher severity and duration is featuring in the southwestern part of the basin. In contrast, westerlies-dominated region was found to be the hotspot of dry events with higher duration, severity, and intensity. Moreover, the surrounding region of the Himalaya divide line and the monsoon-dominated part of the basin were found to be the hotspots of rapid wet-dry transition events.