Drought monitoring is a critical environmental challenge, particularly in regions where irrigated agricultural intensification and urban expansion pressure water resources. This study assesses the impact of these activities on drought dynamics in Morocco’s Oum Er-Rbia (OER) watershed from 2002 to 2022, using the newly developed Watershed Integrated Multi-Drought Index (WIMDI), through Google Earth Engine (GEE). WIMDI integrates several drought indices, including SMCI, ESI, VCI, TVDI, SWI, PCI, and SVI, via a localized weighted averaging model (LOWA). Statistical validation against various drought-type indices including SPI, SDI, SEDI, and SMCI showed WIMDI’s strong correlations (r-values up to 0.805) and lower RMSE, indicating superior accuracy. Spatiotemporal validation against aggregated drought indices such as VHI, VDSI, and SDCI, along with time-series analysis, confirmed WIMDI’s robustness in capturing drought variability across the OER watershed. These results highlight WIMDI’s potential as a reliable tool for effective drought monitoring and management across diverse ecosystems and climates.