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Soil moisture (SM) is critical in monitoring the time-lagged impacts of agrometeorological drought. In Australia and several south-west Pacific Small Island Developing States (SIDS), there are a limited number of in situ SM stations that can adequately assess soil-water availability in a near-real-time context. Satellite SM datasets provide a viable alternative for SM monitoring and agrometeorological drought provision in these regions. In this study, we investigated the performance of Soil Moisture Active Passive (SMAP), Soil Moisture and Ocean Salinity (SMOS), Soil Moisture Operational Products System (SMOPS), SM from the Advanced Microwave Scanning Radiometer 2 (AMSR-2) and SM from the Advanced Scatterometer (ASCAT) over Australia and south-west Pacific SIDS. Products were first evaluated in Australia, given the presence of several in-situ SM monitoring stations and a state-of-the-art hydrological model—the Australian Water Resources Assessment Landscape modelling system (AWRA-L). We further investigated the accuracy of SM satellite datasets in Australia and the south-west Pacific through Triple Collocation analysis with two other SM reference datasets—ERA5 reanalysis SM data and model data from the Global Land Data Assimilation System (GLDAS) dataset. All datasets have differing observation periods ranging from 1911-now, with a common period of observations between 2015–2021. Results demonstrated that ASCAT and SMOS were consistently superior in their performance. Analysis in the six south-west Pacific SIDS indicated reduced performance for all products, with ASCAT and SMOS still performing better than others for most SIDS with median R values ranging between 0.3–0.9. We conducted a case study of the 2015 El Niño and Positive Indian Ocean Dipole-induced drought in Papua New Guinea. It was shown that ASCAT is a valuable dataset indicative of agrometeorological drought for the nation, highlighting the value of using satellite SM products to provide early warning of drought in data-sparse regions in the south-west Pacific. [ABSTRACT FROM AUTHOR]