Precipitation is a critical variable to hydrologic simulation and flood prediction. As a prelude to NASA's planned Global Precipitation Measurement (GPM), current Multi-satellite Precipitation Retrievals are intended to provide the best real-time precipitation estimates with higher spatiotemporal resolution at quasi-global scale. The integration of multi-satellite precipitation estimates to distributed hydrological models provides hydrologists with an opportunity to improve hydrological process simulation and flood prediction capability for large river basins, especially in the remote regions where in-situ precipitation and stream gauge networks are sparse. In this proposal, two tested-grids (approx. 25km×25km) with dense ground observation networks for precipitation will be constructed within the semi-arid Laohahe Basin located in northeast China and the southern humid Mishui Basin, respectively. We intend to install some new in-situ instruments of tipping-bucket rain gauges within these two tested-grids to benchmark the satellite rainfall products. The overarching goal of this proposal is to investigate the accuracy and error of current high resolution real-time satellite-borne precipitation estimates (i.e., TMPA-RT, CMORPH, PERSIANN) and assess their hydrologic application. This will be evaluated using the observations from the previously described two instrumented basins. Further, we will investigate and identify the key factors that affect the accuracy of three mainstream satellite precipitation estimates from the perspective of precipitation retrievals. Then,the satellite precipitation estimates will be integrated into an improved distributed hybrid hydrologic model for hydrologic simulation at daily scale and flood prediction at 3-hourly scale over our study basins. Additionally, a kind of satellite rainfall error model (SREM2D) will be used to characterize the multidimensional error structure of satellite-driven flood prediction at different spatial resolutions. Finally, we will investigate how the introduce of several new sensors and crucial algorithm upgrades affect the potential of satellite precipitation in hydrologic simulation and prediction.The research results of this project can provide theory and technology references for the application of forthcoming Chinese Precipitation Radar Satellite in the flood prediction.