In Nepal, as the spatial distribution of rain gauges is not sufficient to provide detailed perspective on the highly varied spatial nature of rainfall, satellite‐based rainfall estimates provides the opportunity for timely estimation. This paper presents the flood prediction of Narayani Basin at the Devghat hydrometric station (32 000 km2) using bias‐adjusted satellite rainfall estimates and the Geospatial Stream Flow Model (GeoSFM), a spatially distributed, physically based hydrologic model. The GeoSFM with gridded gauge observed rainfall inputs using kriging interpolation from 2003 was used for calibration and 2004 for validation to simulate stream flow with both having a Nash Sutcliff Efficiency of above 0.7. With the National Oceanic and Atmospheric Administration Climate Prediction Centre's rainfall estimates (CPC_RFE2.0), using the same calibrated parameters, for 2003 the model performance deteriorated but improved after recalibration with CPC_RFE2.0 indicating the need to recalibrate the model with satellite‐based rainfall estimates. Adjusting the CPC_RFE2.0 by a seasonal, monthly and 7‐day moving average ratio, improvement in model performance was achieved. Furthermore, a new gauge‐satellite merged rainfall estimates obtained from ingestion of local rain gauge data resulted in significant improvement in flood predictability. The results indicate the applicability of satellite‐based rainfall estimates in flood prediction with appropriate bias correction.
