The Tigris-Euphrates river basin is one of the most significant water systems in the Middle East, historically forming part of the Fertile Crescent, a region that once supported some of the earliest civilizations. However, contemporary challenges, particularly climate change and land use changes, have placed substantial pressure on water resources of the basin. These environmental stressors exacerbate existing complexities related to regional water security, geopolitical tensions, and ecological sustainability. To effectively address the challenges of sustainable development in the Tigris-Euphrates river basin, it is essential to examine the historical dynamics of key environmental and hydrological factors. These include drought patterns, land use and land cover (LULC) changes, aridity trends, and hydrological sustainability, all of which play a crucial role in shaping the region’s water scarcity and vulnerability to climate change. Understanding these dynamics provides critical insights into the long-term transformations that have affected water availability and ecosystem health in the basin. In light of these challenges, the primary objective of our analysis is to provide a historical situation analysis that offers insights into the interconnected complexities of drought, LULC changes, and hydrological sustainability. This research systematically evaluates the hydrological sustainability of the basin by integrating meteorological data analysis, remote sensing, and GIS-based modeling techniques. The study covers the period 1975–2022, with a focus on historical drought occurrences, land-use and land-cover (LULC) changes, evapotranspiration trends, aridity indices, and crop suitability under varying climatic conditions.