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Abstract The 2022 Compound Drought and Heatwave (CDHW) caused widespread crop damage, water shortages, and wildfires across Europe. Our study analyzed this event’s severity and return period (RP) and compared it with past mega CDHWs in Europe. The hardest‐hit areas were Iberian Peninsula, France, and Italy, where temperatures exceeded 2.5°C above normal, and severe droughts persisted from May to August. Using a Bayesian approach, we estimated the RP for the 2022 CDHW event, which was unprecedented in Northern Italy, Iberian Peninsula, and western parts of France, with RPs of 354, 420, and 280 years, respectively. The reduced soil moisture due to precipitation deficits and high temperatures contributed to the persistence and severity of drought, creating a positive feedback loop where dry soils led to even drier conditions. In light of our findings, it is evident that global warming poses increased risks of severe CDHW events, which are likely to increase.