Over the last century, significant climate changes, including more intense droughts and floods, have impacted agriculture and socio-economic development, particularly in rain-dependent regions like Marrakech-Safi (MS) in Morocco. Limited data availability complicates the accurate monitoring and assessment of these natural hazards. This study evaluates the role of satellite data in drought monitoring in the MS region using rain gauge observations from 18 stations, satellite-based precipitation estimates from Climate Hazards Group InfraRed Precipitation with Station (CHIRPS), and temperatures from the fifth generation of the atmospheric global climate reanalyzed Era5-Land data. The Standardized Precipitation Evapotranspiration Index (SPEI) was calculated at various timescales to characterize droughts. Statistical analysis was then performed to assess the correlation between the SPEI and the cereal yields. The results show that CHIRPS effectively monitors droughts, demonstrating strong statistically significant correlations (r similar to 0.9) with the observed data in the plains, the plateaus, Essaouira-Chichaoua Basin, and the coastal zones, along with a good BIAS score and lower root mean square error (RMSE). However, discrepancies were observed in the High Atlas foothills and the mountainous regions. Correlation analysis indicates the significant impact of droughts on agricultural productivity, with strong correlations between the Standardized Yield Residual Series (SYRS) and SPEI-6 in April and SPEI-12 in June (r similar to 0.80). These findings underscore the importance of annual and late-season precipitation for cereal yields. Analysis provides valuable insights for decision-makers in designing adaptation strategies to enhance small-scale farmers' resilience to current and projected droughts.