Iran is located in the arid belt of the Earth and about two third of its territories consists of arid and semi-arid regions. Therefore, drought in many of the provinces in Iran is an inevitable phenomenon. Several indices are used for the purpose of drought identification and quantification. One of the most important indices is Palmer Drought Severity Index (PDSI) which has gained a prominent position as this index is based on the Water Balance Equation . The disadvantage of this index is that it is not a standardized index and can’t be appropriate for different spatial and temporal comparisons. The Standardized Palmer Drought Index (SPDI) was therefore developed to avoid the problem. Since Chaharmahal Bakhtiari Province is one of the most important provinces in Iran in terms of water resources, its drought analysis will be investigated in this study using SPDI index. Essential information in this investigation include monthly temperature and precipitation and soil moisture measurement (in term of Available Water Capacity, AWC). For this study, 11 synoptic, climatology and evaporation gauging stations were chosen. To estimate SPDI, moisture departure, d, was first calculated in monthly time scale and then converted to cumulative moisture departure values in different time scales including 3, 6, 9, 12, and 24 months. The best statistical distribution was then fitted to cumulative departure. These values were then standardized to have SPDI. The SPDI is also compared to SPI. The results show that SPDI has the same temporal pattern as SPI in presenting drought and wet periods. However, as soil moisture affects SPDI estimation, it will be more valid for analyzing and monitoring drought conditions, especially for agricultural drought. The results also showed that 1992, 1993, and 2006 years were the most humid and 2000, 2001, and 2008 years were the driest time in Chaharmahal Bakhtiari Province during 1988 to 2012. Keywords: Standardized Palmer Drought Index, Drought monitoring, Standardized Precipitation Index, Soil Moisture, Chaharmahal Bakhtiari Province