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As an essential part of the hydrological cycle, precipitation is usually associated with floods and droughts and is increasingly being paid attention to in the context of global warming. Analyzing the change trends and correlation of temperature and extreme precipitation indicators can effectively identify natural disasters. This study aimed to detect the correlation and change trends of temperature and extreme precipitation indicators in Inner Mongolia from 1960 to 2019. Panel vector autoregression (PVAR) models based on Stata software were used to detect the correlation between temperature and extreme precipitation indicators at 35 climatological stations throughout Inner Mongolia. The temperature and extreme precipitation indicator trends were analyzed using the Mann–Kendall test and Sen's slope method. The spatial distribution characteristics of the annual precipitation and rainfall intensity were more significant in the southeast and more minor in the northwest, while an increase in the annual wet days was noticeable to the northeast. The Granger cause tests of the temperature and the extreme precipitation indicators showed a correlation between each indicator and temperature at the significance level of 1%. The temperature positively correlated with only the rainfall intensity while negatively correlating with the remaining indicators. There is no doubt that trend analysis showed significant increasing trends in rainfall intensity at all stations, which means increased risk in extreme precipitation events. By contrast, the annual precipitation and annual wet days showed significant decreasing trends, which means that the precipitation is concentrated, and it is easier to form extreme precipitation events. The study can provide a basis for decision-making in water resources and drought/flood risk management in Inner Mongolia, China. [ABSTRACT FROM AUTHOR]