Regional droughts are increasing in frequency and climate change projections indicate an exacerbation in the occurrence of regional droughts in the future. Droughts are complex hydrometeorological events, and the complexity of cause-and-effect relationships across administrative and political borders can make drought management a challenge. While countries are largely focused on assessing drought impacts within their borders, thereby providing focused information for the relevant administration, the impact on communities, industries, and countries that are distantly connected with the affected location must also be taken into consideration. If not considered, drought impacts can be underestimated, and adaptation actions undertaken may not completely address the drought risks. Understanding transboundary drought risks is an important and integral part of drought risk reduction and it will grow in importance as the world experiences more integration at regional and global levels on multiple fronts. To address drought risks comprehensively, the new paradigm demands that the impacts of regional droughts are fully understood, that this understanding is incorporated into drought monitoring and early warning systems, and that drought early warning information is provided to all stakeholders, including those beyond the boundaries of the affected region, thereby eliciting appropriate action.