To overcome the low accuracy, poor reliability, and delay in the current drought prediction models, we propose a new extreme learning machine (ELM) based on an improved variational mode decomposition (VMD). The model first redefines the output of the hidden layer of the ELM model with orthogonal triangular matrix decomposition (QR) to construct an orthogonal triangular ELM (QR-ELM), and then introduces an online sequence learning mechanism (OS) into the QR-ELM to construct an online sequence OR-ELM (OS-QR-ELM), which effectively improves the efficiency of the ELM model. The mutual information extension method was then used to extend both ends of the original signal to improve the VMD end effect. Finally, VMD and OS-QR-ELM were combined to construct a drought prediction method based on the VMD-OS-QR-ELM. The reliability and accuracy of the VMD-OS-QR-ELM model were improved by 86.19% and 93.20%, respectively, compared with those of the support vector regression model combined with empirical mode decomposition. Furthermore, the calculation efficiency of the OS-QR-ELM model was increased by 88.65% and 85.32% compared with that of the ELM and QR-ELM models, respectively.