Droughts and soil erosion are among the most prominent climatic driven hazards in drylands, leading to detrimental environmental impacts, such as degraded lands, deteriorated ecosystem services and biodiversity, and increased greenhouse gas emissions. In response to the current lack of studies combining drought conditions and soil erosion processes, in this study, we developed a comprehensive Geographic Information System (GIS)-based approach to assess soil erosion and droughts, thereby revealing the relationship between soil erosion and droughts under an arid climate. The vegetation condition index (VCI) and temperature condition index (TCI) derived respectively from the enhanced vegetation index (EVI) MOD13A2 and land surface temperature (LST) MOD11A2 products were combined to generate the vegetation health index (VHI). The VHI has been conceived as an efficient tool to monitor droughts in the Negueb watershed, southeastern Tunisia. The revised universal soil loss equation (RUSLE) model was applied to quantitatively estimate soil erosion. The relationship between soil erosion and droughts was investigated through Pearson correlation. Results exhibited that the Negueb watershed experienced recurrent mild to extreme drought during 2000–2016. The average soil erosion rate was determined to be 1.8 t/(hm2·a). The mountainous western part of the watershed was the most vulnerable not only to soil erosion but also to droughts. The slope length and steepness factor was shown to be the most significant controlling parameter driving soil erosion. The relationship between droughts and soil erosion had a positive correlation (r=0.3); however, the correlation was highly varied spatially across the watershed. Drought was linked to soil erosion in the Negueb watershed. The current study provides insight for natural disaster risk assessment, land managers, and stake-holders to apply appropriate management measures to promote sustainable development goals in fragile environments.