In the last few years, satellite-based precipitation datasets are believed to be a potential source for forcing inputs in driving hydrological models, which are important especially in complex terrain areas or ungauged basins where ground gauges are generally sparse or nonexistent. This study aims to comprehensively evaluate the satellite precipitation products, CMORPH-CRT, PERSIANN-CDR, 3B42RT, and 3B42 against gauge-based datasets and to infer their relative potential impacts on hydrological processes simulation using the HEC-HMS model in the Ganzi River Basin (GRB) of the Tibetan Plateau. Results from a quantitative statistical comparison reveal that, at annual and seasonal scales, both CMORPH-CRT and 3B42 perform better than PERSIANN-CDR and 3B42RT. The CMORPH-CRT and 3B42 tend to underestimate values at the medium and high precipitation intensities ranges, whereas the opposite tendency is found for PERSIANN-CDR and 3B42RT. Overall, 3B42 exhibits the best performance for streamflow simulations over GRB and even outperforms simulation driven by gauge data during the validation period. PERSIANN-CDR shows the worst overall performance. After recalibrating with input-specific precipitation data, the performance of all satellite precipitation forced simulations is substantially improved, except for PERSIANN-CDR. Furthermore, 3B42 is more suitable to drive hydrological models and can be a potential alternative source of sparse data in Tibetan Plateau basins.