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This paper presents a validation study for a high-resolution version of the Regional Climate Model version 3 (RegCM3) over the Carpathian basin and its surroundings. The horizontal grid spacing of the model is 10 km--the highest reached by RegCM3. The ability of the model to capture temporal and spatial variability of temperature and precipitation over the region of interest is evaluated using metrics spanning a wide range of temporal (daily to climatology) and spatial (inner domain average to local) scales against different observational datasets. The simulated period is 1961--90. RegCM3 shows small temperature biases but a general overestimation of precipitation, especially in winter; although, this overestimate may be artificially enhanced by uncertainties in observations. The precipitation bias over the Hungarian territory, the authors'' main area of interest, is mostly less than 20%%. The model captures well the observed late twentieth-century decadal-to-interannual and interseasonal variability. On short time scales, simulated daily temperature and precipitation show a high correlation with observations, with a correlation coefficient of 0.9 for temperature and 0.6 for precipitation. Comparison with two Hungarian station time series shows that the model performance does not degrade when going to the 10-km gridpoint scale. Finally, the model reproduces the spatial distribution of dry and wet spells over the region. Overall, it is assessed that this high-resolution version of RegCM3 is of sufficiently good quality to perform climate change experiments over the Carpathian region--and, in particular, the Hungarian territory--for application to impact and adaptation studies. [ABSTRACT FROM AUTHOR]