As a complex natural disaster, drought encompasses significant and wide-ranging impacts on various environmental aspects. While meteorological, hydrological, agricultural, and socioeconomic droughts have been extensively studied, the scientific understanding of environmental droughts (the proposed fifth classification) remains relatively limited, hampering practical assessment efforts. To address this gap, the present study, for the first time, conducted a rigorous assessment of the applicability of a novel method, namely the heuristic method, in conjunction with a newly developed Environmental Drought Index (EDI). The present study thoroughly analyzed environmental drought events in India's Brahmani River basin, specifically focusing on the Jaraikela catchment. Firstly, the Minimum in-stream Flow Requirement (MFR) was determined using Tennant’s method to synthetically estimate discharge rates to maintain the optimum flow range during the historical period (1980–2014). Secondly, Drought Duration Length (DDL) was calculated by counting consecutive water deficit months with negative monthly Streamflow Rate (SFR) and MFR differences. Three General Circulation Models (GCMs) output ensembles, namely EC-Earth3, MPI-ESM1-2-HR, and MRI-ESM2-0, participating in CMIP-6, were used for past (1980–2014) and future periods (FP-1: 2015–2022, FP-2: 2023–2045) under emission scenarios SSP245 and SSP585. The HydroClimatic Conceptual Streamflow (HCCS) model was employed to simulate the historical and future SFR. Thirdly, the largest water deficit magnitude during DDL was used to estimate the Water Shortage Level (WSL). Finally, integrating DDL and WSL provided the EDI for each environmental drought event. Results demonstrated a strong correspondence between the simulated EDI obtained using MPI-ESM1-2-HR under SSP585 and the observed EDI values, thereby indicating the credibility of the EDI in assessing environmental droughts. Furthermore, the study found severe droughts (i.e., EDI-3) dominating (71–73% of all droughts; occurring during non-monsoonal months) during FP-2 under SSP585 across all three GCMs, differing from moderate droughts in SSP245 of FP-2, both scenarios of FP-1, and the historical period. Based on the findings, the study finally proposed several adaptive measures to mitigate the impacts of increasing environmental drought events in the catchment.