Agricultural drought (AD) is the main environmental factor affecting vegetation productivity (VP) in the Yellow River Basin (YRB). In recent years, the nonlinear effects of AD on VP in the YRB have attracted much attention. However, it is still unclear whether fluctuating AD will have complex nonlinear effects on VP in the YRB, and there are scant previous studies at large scale on whether there is a threshold for nonlinear effects of AD on VP in the YRB. Therefore, this study used a newly developed agricultural drought index to explore nonlinear effects on VP revealing the nonlinear effects of AD on VP in the YRB. First, we developed a kernel temperature vegetation drought index (kTVDI) based on kernel normalized difference vegetation index (kNDVI) and land surface temperature data to study the spatiotemporal variation of AD in the YRB. Second, we used GPP data from solar-induced chlorophyll fluorescence inversion as an indicator to explore the spatiotemporal variation of VP in the YRB. Finally, we used several statistical indicators and a distributed lag nonlinear model (DLNM) to analyze the nonlinear effect of AD on VP in the YRB. The results showed that AD decreased significantly during 2000–2020, mainly in the southeast of the Loess Plateau, while GPP increased significantly in 80.93 % of the YRB. Meanwhile, moderate and severe AD stress limited VP growth, with the negative effects gradually decreasing, while mild AD had an increasingly positive promoting effect on VP. AD stress resulted in a VP decrease of 69.78 %, and severe AD stress resulted in a VP decrease of 65.52 %, mainly distributed in the northern Loess and Ordos Plateau. AD had significant nonlinear effects on VP. The effects of moderate and severe AD on the sustained nonlinear lag of vegetation were more obvious, and those of moderate and severe AD on the nonlinear lag of VP were the largest when the lag was approximately 1 month and 7 months. The effect of AD on the nonlinear hysteresis of VP in YRB was significantly different under different vegetation types, and forests were more able to withstand longer and more severe droughts than grasslands and croplands. The results of the study provide a theoretical basis for evaluating AD and analyzing the nonlinear impact of AD on VP. This will provide scientific basis for studying the mechanism of drought effect on vegetation in other regions.