The probability of droughts is becoming more frequent as the climate changes. Droughts hamper agricultural production and could lead to water shortages in Central European countries. The understanding of droughts and the implementation of warning and monitoring systems is supported by EO data. The spectral characteristics of healthy vegetation differ from those of stressed vegetation. With satellites covering the spectral range from 400 – 2500 nm (e.g. Sentinel-2) it is possible to detect changes in spectral characteristics, especially in the SWIR region with the characteristic water absorption bands. Changes in vegetation health and plant water content can be estimated and mapped on large scales with EO data. Nowadays with frequent observations of the Copernicus satellites, the analysis and understanding of these events will progress. In combination with other sources of information like soil moisture anomalies (e.g. detectable with Radar, see also chapter "Soil Moisture") and precipitation deficit, the Copernicus program has set up the European Drought Observatory (EDO).