In many developing regions, the lack of on-site weather data impedes the estimation of rainfall-driven processes, such as soil erosion. Satellite-based precipitation products (SPPs) can support hydrological modelling in gauge-sparse regions by providing continuous rainfall estimates. Accurate rainfall estimation is crucial to soil erosion modelling, particularly in data-scarce regions such as the TRB. In this study, seven satellite-based precipitation products—CHIRPS, IMERG, TRMM, ERA5, GLDAS, and PERSIANN-CDR, along with the IMD gridded dataset—were evaluated for their ability to represent rainfall patterns and support R-factor estimation in the RUSLE framework. This is the first comprehensive evaluation of multiple SPPs for RUSLE-based soil erosion modelling in the Tungabhadra river basin (TRB), providing insights for ungauged watersheds in India. CHIRPS and IMERG displayed relatively smooth and continuous patterns, while PERSIANN-CDR and TRMM exhibited fragmented rainfall zones. ERA5 and GLDAS demonstrated consistent but moderate values across the basin. IMD data served as the reference product for comparison. The findings reveal that the choice of precipitation dataset directly affects the accuracy of erosion estimation. Therefore, multi-dataset evaluation is recommended for reliable assessment of soil loss and watershed planning in ungauged or partially gauged catchments.