This study focuses on assessment of the effect of drought on groundnut production in Madagali Local Government Area, Adamawa State. Food And Agriculral Organization (FAO, 2002), classified drought into two main types: atmospheric drought and agricultural drought meanwhile the agricultural drough was employed.The causes of drought can be the nature of the changing weather patterns which is often seen via uncontrolled buildup of heat on the earth’s surface, meteorological changes which result in a reduction of rainfall, and reduced cloud cover, all of which results in greater evaporation rates. Effects of Drought may range from Effect on agriculture and food security, Effect on water availability, Effect on biodiversity and Crop Production. The study employed random sampling technique in selecting the districts of the study area. About 380 questionnaires were distributed using convenience sampling. Purposive interview was also carried out alongside the questionnaire survey. Information on rainfall was collected from the Upper Benue Development Basin for three decades. The Standardized Precipitation Index (SPI) was used for the data analysis. The data obtained on each parameter and items in the questionnaire were analyzed using descriptive statistics such as frequency, percentage, distribution chart, and graphs. Results shows that the farmers indicate that deforestation and soil degradation or climate change are some of the causes of drought leading to low groundnut yield. The study recommends that Farmers should be conscious of the cessation of the rain fall and utilize it for their groundnuts harvesting. Government should revive the agricultural extension officers that usually alert farmers on dangers of drought in relation to groundnuts cultivation in the study area and the nation at large among others