Precipitation is essential for modeling the hydrologic behavior of watersheds. There exist multiple precipitation products of different sources and precision. We evaluate the influence of different precipitation product on model parameters and streamflow predictive uncertainty using a soil water assessment tool (SWAT) model for a forest dominated catchment in India. We used IMD (gridded rainfall dataset), TRMM (satellite product), bias-corrected TRMM (corrected satellite product) and NCEP-CFSR (reanalysis dataset) over a period from 1998–2012 for simulating streamflow. The precipitation analysis using statistical measures revealed that the TRMM and CFSR data slightly overestimate rainfall compared to the ground-based IMD data. However, the TRMM estimates improved, applying a bias correction. The Nash–Sutcliffe (and R2) values for TRMM, TRMMbias and CFSR, are 0.58 (0.62), 0.62 (0.63) and 0.52 (0.54), respectively at model calibrated with IMD data (Scenario A). The models of each precipitation product (Scenario B) yielded Nash–Sutcliffe (and R2) values 0.71 (0.76), 0.74 (0.78) and 0.76 (0.77) for TRMM, TRMMbias and CFSR datasets, respectively. Thus, the hydrological model-based evaluation revealed that the model calibration with individual rainfall data as input showed increased accuracy in the streamflow simulation. IMD and TRMM forced models to perform better in capturing the streamflow simulations than the CFSR reanalysis-driven model. Overall, our results showed that TRMM data after proper correction could be a good alternative for ground observations for driving hydrological models.