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As the fundamental regulator of energy exchange in the vegetation–soil–atmosphere circulation system, soil moisture is a key parameter for drought monitoring and is indispensable to the land surface hydrological processes. In order to overcome the constraints of the Perpendicular Drought Index, PDI (performs poorly over the fields with dense vegetation and hard to construct the soil line), and the Temperature Vegetation Drought Index, TVDI (requires similar atmospheric forcing and large enough dimension of mapping area), in soil moisture monitoring, a new drought index (Normalized Temperature Drought Index, NTDI) is proposed to explore the spatiotemporal changes of soil moisture by substituting red and near-infrared reflectances with vegetation index and normalized land surface temperature on the basis of the PDI framework. Victoria, Australia, was selected as the study area as it experiences many severe droughts and has been affected for more than ten years. Time series of satellite-based data were applied to evaluate the effectiveness and applicability of the NTDI at the regional scale. Results indicated that the expression of the soil line representing the water condition of the bare soil is easier to obtain in the new trapezoid framework and has good fits with the coefficients of determination (R2) of more than 0.8. Compared with PDI, TVDI and Modified PDI (MPDI) at the cropping sites, NTDI exhibits a relatively better performance in soil moisture monitoring for most days where the R2 achieved can reach to more than 0.7 on DOY 242, 254 and 272. Meanwhile, spatial–temporal mappings of the four drought indices from satellite data were conducted, and the NTDI presented the slightly seasonal variation and effectively described the real spatial characteristics of regional drought. Overall, the NTDI seems to a viable approach and can provide insight into spatial and temporal soil moisture monitoring at different scales. [ABSTRACT FROM AUTHOR]