Hydrological droughts may be referred to as sustained and regionally extensive water shortages as reflected in streamflows that are noticeable and gauged worldwide. Hydrological droughts are largely analyzed using the truncation level approach to represent the desired flow condition such as the median, mean, or any other flow quantile of an annual, monthly, or weekly flow sequence. The quantification of hydrologic droughts is accomplished through indices, such as the standardized streamflow index (SSI) in tandem with the standardized precipitation index (SPI) commonly used in meteorological droughts. The runs of deficits in the SSI sequence below the truncation level are treated as drought episodes, and thus, the theory of runs forms an essential tool for analysis. The parameters of significance from the modeling perspective of hydrological droughts (or tantamount to streamflow droughts in this paper) are the longest duration and the largest magnitude over a desired return period of T-year (or month or week) of the streamflow sequences. It is to be stressed that the magnitude component of the hydrological drought is of paramount importance for the design and operation of water resource storage systems such as reservoirs. The time scales chosen for the hydrologic drought analysis range from daily to annual, but for most applications, a monthly scale is deemed appropriate. For modeling the aforesaid parameters, several methodologies are in vogue, i.e., the empirical fitting of the historical drought sequences through a known probability density function (pdf), extreme number theorem, Markov chain analysis, log-linear, copulas, entropy-based analyses, and machine learning (ML)-based methods such as artificial neural networks (ANN), wavelet transform (WT), support vector machines (SVM), adaptive neuro-fuzzy inference systems (ANFIS), and hybrid methods involving entropy, copulas, and machine learning-based methods. The forecasting of the hydrologic drought is rigorously conducted through machine learning-based methodologies. However, the traditional stochastic methods such as autoregressive integrated moving average (ARIMA), seasonal autoregressive integrated moving average (SARIMA), copulas, and entropy-based methods are still popular. New techniques for flow simulation are based on copula and entropy-based concepts and machine learning methodologies such as ANN, WT, SVM, etc. The simulated flows could be used for deriving drought parameters in consonance with traditional Monte Carlo methods of data generation. Efforts are underway to use hydrologic drought models for reservoir sizing across rivers. The ML methods whilst combined in the hybrid form hold promise in drought forecasting for better management of existing water resources during the drought periods. Data mining and pre-processing techniques are expected to play a significant role in hydrologic drought modeling and forecasting in future.