Thanks to the large scope, high spatial resolution, and increasing data records, satellite-based precipitation products are playing an increasingly important role in drought monitoring. First, based on the data from ground sites, the long-term Multi-Source Weighted-Ensemble Precipitation (MSWEP) precipitation product was evaluated in respect to drought monitoring. Then, based on the MSWEP product, the drought trends and the spatiotemporal characteristics of the drought events in four major basins (Amu Darya Basin, Syr Darya Basin, Chu-Talas River Basin, and Ili River Basin) in Central Asia, which have relatively dense gauge sites, were studied. The Standardized Precipitation Index (SPI) and the run theory were used to identify drought events and describe their characteristics. The results showed that MSWEP can effectively capture drought events and their basic characteristics. In the past 40 years, the study area experienced 27 drought events, among which the severest one (DS = 15.66) occurred from June 2007 to September 2008. The drought event that occurred from June 1984 to October 1984 had a drought peak value of 3.39, with the largest drought area (99.2%). Since 1881, there appeared a drying trend and a wetting trend in the Amu Darya River basin and the Ili River basin, respectively. No obvious wetting or drying trend was found in both the Chu-Talas River basin and the Syr Darya basin. Since 2016, the drought area has been on the increase.