This paper systematically reviews the potential of the Sentinel-2 (A and B) in assessing drought. Research findings, including the IPCC reports, highlighted the increasing trend in drought over the decades and the need for a better understanding and assessment of this phenomenon. Continuous monitoring of the Earth’s surface is an efficient method for predicting and identifying the early warnings of drought, which enables us to prepare and plan the mitigation procedures. Considering the spatial, temporal, and spectral characteristics, the freely available Sentinel-2 data products are a promising option in this area of research, compared to Landsat and MODIS. This paper evaluates the recent developments in this field induced by the launch of Sentinel-2, as well as the comparison with other existing data products. The objective of this paper is to evaluate the potential of Sentinel-2 in assessing drought through vegetation characteristics, soil moisture, evapotranspiration, surface water including wetland, and land use and land cover analysis. Furthermore, this review also addresses and compares various data fusion methods and downscaling methods applied to Sentinel-2 for retrieving the major bio-geophysical variables used in the analysis of drought. Additionally, the limitations of Sentinel-2 in its direct applicability to drought studies are also evaluated.

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