Satellite precipitation products offer an opportunity to evaluate extreme events (flood and drought)for areas where rainfall data are not available or rain gauge stations are sparse. In this study, dailyprecipitation amount and frequency of TRMM 3B42V.7 and CMORPH products have been validatedagainst daily rain gauge precipitation for the monsoon months (June–September or JJAS) from 2005–2010 in the trans-boundary Gandak River basin. The analysis shows that the both TRMM and CMORPHcan detect rain and no-rain events, but they fail to capture the intensity of rainfall.The detection of precipitation amount is strongly dependent on the topography. In the plains areas,TRMM product is capable of capturing high-intensity rain events but in the hilly regions, it underestimatesthe amount of high-intensity rain events. On the other hand, CMORPH entirely fails to capturethe high-intensity rain events but does well with low-intensity rain events in both hilly regions as well asthe plain region. The continuous variable verification method shows better agreement of TRMM rainfallproducts with rain gauge data. TRMM fares better in the prediction of probability of occurrenceof high-intensity rainfall events, but it underestimates intensity at high altitudes. This implies thatTRMM precipitation estimates can be used for flood-related studies only after bias adjustment for thetopography.