Drought is a recurring natural climatic hazard event over terrestrial land; it poses devastating threats to human health, the economy, and the environment. Given the increasing climate crisis, it is likely that extreme drought phenomena will become more frequent, and their impacts will probably be more devastating. Drought observations from space, therefore, play a key role in dissimilating timely and accurate information to support early warning drought management and mitigation planning, particularly in sparse in-situ data regions. In this paper, we reviewed drought-related studies based on Earth observation (EO) products in Southeast Asia between 2000 and 2021. The results of this review indicated that drought publications in the region are on the increase, with a majority (70%) of the studies being undertaken in Vietnam, Thailand, Malaysia and Indonesia. These countries also accounted for nearly 97% of the economic losses due to drought extremes. Vegetation indices from multispectral optical remote sensing sensors remained a primary source of data for drought monitoring in the region. Many studies (~21%) did not provide accuracy assessment on drought mapping products, while precipitation was the main data source for validation. We observed a positive association between spatial extent and spatial resolution, suggesting that nearly 81% of the articles focused on the local and national scales. Although there was an increase in drought research interest in the region, challenges remain regarding large-area and long time-series drought measurements, the combined drought approach, machine learning-based drought prediction, and the integration of multi-sensor remote sensing products (e.g., Landsat and Sentinel-2). Satellite EO data could be a substantial part of the future efforts that are necessary for mitigating drought-related challenges, ensuring food security, establishing a more sustainable economy, and the preservation of the natural environment in the region.