This study aimed to understand and explain the lived experience of drought among farmers and herders of the Bahluli tribe in Zirkuh County, South Khorasan Province. Accordingly, the present study employed grounded theory methodology to investigate the drought experience among the herders and farmers of the Bahluli tribe. Participants were selected through purposive sampling from among tribal members with a background in farming and animal husbandry. Theoretical saturation was achieved after conducting 29 interviews. Data from in-depth interviews were analyzed using MAXQDA software, and based on grounded theory procedures, 29 open codes, 11 axial codes, and 5 core codes were extracted. The findings indicated that 11 axial categories namely "quantitative and qualitative decline of water resources," "reduced biological yield of agricultural and livestock products," "economic and infrastructural challenges," "psychological and social consequences of the crisis," "drought experience," "trust deficit and reduced self-sufficiency," "resource consumption optimization strategies," "economic and social strategies for crisis management," "social consequences of the crisis," "water resource conflicts," and "psychological effects of the crisis"—play a role in shaping the lived experience of farmers and herders regarding the phenomenon of drought. Based on the qualitative analysis of data from interviews with 29 herders and farmers of the Bahluli tribe, drought experience was identified as a complex and multidimensional phenomenon. The underlying causes of drought included the quantitative and qualitative decline of water resources, reduced biological yield of agricultural and livestock products, economic and infrastructural challenges, and the psychological and social consequences of the crisis.