Satellite and reanalysis rainfall estimates (SREs) are valuable alternatives to gauge data in data-scarce regions; however, their reliability in areas with complex terrain and variable precipitation remains uncertain. This study evaluated six SREs (CHIRPS v2, ERA5, ERA5-Land, IMERG v07, MSWEP v2.8, and TRMM 3B42) against gauge observations over the period 2005 to 2019. The evaluation was conducted using multiple statistical, categorical, and distributional metrics at daily to seasonal timescales. Terrain-based classification and rainfall intensity categories were used to explore the influence of topography and event magnitude on product performance. The accuracy of SREs improves with temporal aggregation, the monthly scale offering the highest reliability for water resource management. However, their tendency to overestimate light and underestimate heavy daily rainfall requires careful bias adjustment in flood and extreme event analysis. MSWEP, CHIRPS, and IMERG provided balanced and consistent performance across all metrics, rainfall intensities, and terrain zones. Notably, ERA5 and ERA5-Land consistently overestimated average rainfall. All SREs identified dry days well, and their performance declined with increasing intensity. No significant performance variation was observed across different altitudes. This study provides valuable insights into the selection of rainfall products, supporting climate and hydrological studies in data-scarce areas of the Ethiopian highlands.