Drought hazards induced by continuous water shortage may damage crop growth and cause severe grain loss. With one of the most intensive irrigation systems, the Indus basin has supported agriculture for millennia and feeds up more than 300 million people. The water supply for the basin scale irrigation is dominated by melting of glaciers and snowpack in the Himalaya and Karakoram mountain ranges, ground water as well as the Asian monsoon rainfall. To understand how ecosystems over the Indus basin with such complex water supply mechanism response to meteorological drought (rainfall shortage) is critical for future drought monitoring and evaluation applications. This study evaluated the spatiotemporal response pattern using correlation analysis of rainfall anomalies (3-month scale) and vegetation anomalies (1-month scale) with long-term satellite observations. The result found that the vegetation over northern Indus valley significantly coupled to rainfall variation during both summer (Kharif) and winter (Rabi) monsoon season. While significant response during Kharif season also was identified over the southern part, especially over the Punjab, where was well equipped with irrigation system. We concluded that special attention should be paid to drought assessment in terms of rainfall and vegetation anomaly over the Indus basin.