Italian ryegrass (Lolium multiflorum Lam.) is a major winter forage crop requiring improved drought tolerance under climate change. This study evaluated 42 accessions, consisting of 20 Korean cultivars and 22 exotic germplasm under four polyethylene glycol (PEG) concentrations (0, 10, 15, and 20%) to assess germination and early seedling responses to drought stress. Increasing PEG levels significantly reduced germination percentage (GP), germination energy (GE), germination index (GI), and seedling vigor index (SVI), while mean germination time (MGT) increased. At 20% PEG, GP decreased by approximately 74% compared with the control. Early seedling vigor, expressed as SVI (integrating fresh weight, shoot length, and root length) also declined depending on concentration. Germination traits (GE and GI) showed strong positive correlations with SVI, indicating that early germination performance was closely associated with subsequent growth under drought stress. Fuzzy comprehensive evaluation and principal component analysis consistently identified several accessions (Earlybird, IR602, IR901, Florida 98, Maximus, Orlando, and Moscovsky 74) as relatively drought tolerant. Overall, the integration of germination and seedling vigor index provides a reliable phenotypic screening approach for identifying drought-tolerant Italian ryegrass.