Poyang Lake is the largest freshwater lake in China, serving as a natural reservoir and playing a paramount role in climate regulation, ecological environment, and water resource management. However, in recent years, Poyang Lake has approached desiccation multiple times, with severe droughts becoming increasingly common. Consequently, precise quantification and analysis of the terrestrial water storage anomalies (TWSA) and drought characteristics of the Poyang Lake basin (PLB) are of profound scientific and practical significance. This paper, for the first time, utilizes data for the period 2021–2022 from 77 newly-established GNSS observation stations in the PLB to precisely determine its vertical crustal displacement, invert daily and monthly TWSA, and investigate extreme hydrological drought. The results reveal the following: 1) The annual amplitude range of vertical surface displacements at GNSS stations in the Poyang Lake basin is from 7 to 14 mm, with the most substantial seasonal vertical displacements occurring during the months of June and July; 2) monthly GNSS-TWSA maintains a commendable consistency with TWSA data obtained from the Gravity Recovery and Climate Experiment (GRACE), the Global Land Data Assimilation System (GLDAS), and precipitation, with correlation coefficients of 0.67, 0.55, and 0.62, respectively; 3) at daily scale, the GNSS-derived Drought Severity Index (GNSS-DSI) accurately recorded the severity and intensity of eight drought events in the PLB during 2021–2022, in particular the period of extensive drought between October 2021 and February 2022, when drought intensity reaching a notable 1.03, which is classified as an extreme and prolonged drought event. Additionally, at local temporal scales, daily GNSS-DSI exhibits heightened sensitivity to drought signals. This study provides novel technological tools and datasets for multi-source satellite-based drought monitoring in the PLB.