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Quantitatively evaluation of satellite precipitation and potential evapotranspiration products with the high resolution, wide coverage and dynamic continuity is an important foundation for drought monitoring over mainland China. This paper examined the accuracy of products and the utility of drought monitoring using the newly released long-term (more than 30 years) satellite precipitation products (climate hazards group infrared precipitation with station, CHIRPS) data version 2.0 and potential evapotranspiration products (global land-surface evaporation: the Amsterdam methodology, GLEAM) dataset. We selected standardized precipitation evapotranspiration index (SPEI) and six statistical and classification measures indexes to evaluate accuracy and the utility of CHIRPS and GLEAM-Ep (potential evapotranspiration derived from GLEAM), with China Gauge-based Precipitation Daily Analysis dataset (CGDPA) and potential evapotranspiration calculated by Penman-Monteith (PM-Ep) as evaluation reference data sets. The results showed that CHIRPS and GLEAM-Ep performed well in eastern and southwest of China. However, their performance in western China was uncertain due to the sparsity of meteorological stations. SPEIs (SPEI value calculated by the CHIRPS and GLEAM-Ep) had a good performance on drought monitoring in eastern and southwestern China. Values of correlation coefficient (CC) between SPEIs and SPEIm (SPEI value calculated by the CGDPA and PM-Ep) were more than 0.6 in southeastern China, southwestern China, the middle and lower reaches of the Yangtze River region and northern China, especially in relatively humid areas, which the correlation coefficient values were more than 0.7 and the root mean-squared error (RMSE) values were less than 0.8. In order to further evaluate the performance of SPEIs in drought monitoring at spatial and temporal scales, the SPEIs3 (SPEIs at three-month scale) and SPEIm3 (SPEIm at three-month scale) in southeastern China, southwestern China, the middle and lower reaches of the Yangtze River region and northern China were compared. SPEIs3 had a better simulation effect on the evolution process of the ratio of drought area in those regions during1981-2016. And the success ratio of simulating drought duration was about 0.93, 0.57, 0.71 and 0.81, respectively. Moreover, SPEIs3 displayed a high accuracy over the four regions in capturing drought, which was the spatial distribution of typical drought events on specific month. In conclusion, SPEI based on long-term CHIRPS and GLEAM-Ep could be applied to monitor and evaluate drought in eastern and southwestern China. This paper can provide reliable reference for monitoring and warning of drought events and water resources management in those regions. [ABSTRACT FROM AUTHOR]