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The purpose of this study is to analyze the spatiotemporal variations in drought in Serbia over recent decades using the standardized precipitation evapotranspiration index (SPEI). The analysis is performed for time series of 1-, 3-, 6-, and 12-month SPEI indices (SPEI-01, SPEI-03, SPEI-06 and SPEI-12, respectively) calculated using the E -OBS gridded dataset with a horizontal resolution of 0.1° for the period of 1950–2022. In general, it was found that negative SPEI trends prevailed in Serbia for all months and all analyzed SPEI timescales, indicating a more frequent appearance of droughts in recent decades. Moreover, for a large majority of month-timescale combinations, the area with a negative trend was larger than the area with a positive trend. For several reasons, we focused on the SPEI for August. First, the SPEI for this month shows one of the most pronounced negative trends, which is rather consistent over different timescales and consistent in terms of the area over which the trend was found to be significant. Statistically significant negative trends of SPEI-03, −06 and − 12 for August were found over 11, 17 and 38% of the country area, respectively. To better understand the trends and changes in the SPEI for August, focusing on extreme and severe drought events, an innovative trend analysis (ITA) was applied. It was found that the occurrence of both extreme and severe SPEI drought categories has doubled over the last thirty years in comparison with the previous thirty-year period. Additionally, more frequent transitions from neutral and wet categories to dry categories were observed through an application of the Markov chain. Second, the special focus on SPEI-03, −06 and − 12 for August was motivated by the fact that we found a significant correlation between these index values and the annual maize production in Serbia, indicating that the SPEI for August can be useful for the assessment of drought impact on agriculture. To better understand interannual variability and long-term trends, this paper also explores the relations between the SPEI over Serbia and large-scale circulation patterns, together with general global and continental warming trends. Our findings indicate that drought changes over recent decades may be driven by the interplay of long-term warming and large-scale circulation patterns. In the context of climate change, especially climate projections, Serbia is situated in a region for which climate projections of mean precipitation change demonstrate weak signals and often with conflicting signs of change within multimodel ensembles. From this point of view, our results can be seen as a contribution to a better understanding of changes in extremes, in our case droughts, that can be hidden by inconclusive changes in the mean values. Finally, due to the similar situation in terms of precipitation and drought trends and changes, our results may be relevant for a wider region, and not only for Serbia. • For Serbia negative trends in SPEI index, for different months and timescales, are dominant. • Occurrence of extreme drought categories has doubled over the last decades. • Transitions from neutral and wet categories to dry categories are more frequent. • These changes are driven by long-term warming and large-scale circulation patterns. [ABSTRACT FROM AUTHOR]