Drought over Nepal is studied on the basis of precipitation as a key parameter. Using monthly mean precipitation data for a period of 33 years, Standardized Precipitation Index (SPI) is produced for the drought analysis with the time scale of 3 months (SPI-3) and 12 months (SPI-12) as they are applicable for agriculture and hydrological aspects, respectively. Time-space variability is explored based on Principal Component Analysis (PCA) along with Rotated PCA (RPCA). Four rotated components were explored for both SPI-3 and SPI-12 representing climatic variability with cores over eastern, central and western Nepal separately.