Chronic seasonal crop and livestock loss due to heat stress and rainfall shortages can pose a serious threat to human health, especially in Sub-Saharan Africa where subsistence and small-scale farming dominate. Young children are particularly susceptible to undernutrition when households experience food insecurity because nutritional deficiencies affect their growth and development. The increase in the frequency of extreme climate events, including droughts, can potentially pose serious health impacts on children. However, the evidence is inconclusive and rather limited to small-scale local contexts. Furthermore, little is known about the differential impacts of droughts on the health of population subgroups. This study contributes to the literature by using data from three nationwide Demographic and Health Surveys (DHS) for Ethiopia conducted in 2005, 2011 and 2016 (n = 21,551). Undernutrition, measured as stunting and wasting among children under five, is used as a health indicator. Droughts are identified using the Standardized Precipitation Evapotranspiration Index (SPEI), a multi-scalar drought index. This study found that drought exposure during the main agricultural season (meher) increased the risk of both chronic undernutrition (stunting) and acute undernutrition (wasting) among under-five children in Ethiopia, however, the impacts vary with population subgroups. Boys, children born to uneducated mothers, and those living in the rural area and whose households are engaged in agricultural activities were more likely to be affected. This suggests that nutritional intervention should target these particularly vulnerable groups of the population. (C) 2021 Elsevier Ltd. All rights reserved.