Abstract The challenges in drought-hit Bundelkhand are stemming from policy constraints and insecurity of water, energy, and food resources, which have triggered mass migration, unemployment, indebtedness, and farmer suicide. Among the surveyed households of Banda District, 21% have no electricity, 90% are using fuelwood and cow dung for cooking purposes, 70% are engaged in agriculture, per capita food consumption is very low, and 51% of the households are using less than 40 lpcd (liters per capita per day) of water. The research methodology is unique is tailored to the WEF nexus approach. It analyzes the primary data of 534 households, 33 experts (Delphi Technique), and the secondary data of 189 articles. The Causal Loop Diagrams capture the system's dynamic behavior and establishes interconnectedness of the identified control parameters using the systems approach. Major parameters for agricultural production are productivity, productive area, and cropping intensity, while major water demand comes from agriculture, industrial, and domestic use. The energy sector is identified as the most challenging in this region, and the total generation comes from solar, biogas, fossil fuels, and organic fuels. This study concludes with findings suggesting urgent actions to be taken for regional sustainability and policy recommendations at the local level.