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Summary: In this paper we proposed: (1) an algorithm of glacier melt, sublimation/evaporation, accumulation, mass balance and retreat; (2) a dynamic Hydrological Response Unit approach for incorporating the algorithm into the Soil and Water Assessment Tool (SWAT) model; and (3) simulated the transient glacier retreat and its impacts on streamflow at basin scale. Application of the enhanced SWAT model in the Manas River Basin (MRB) in the Tianshan Mountains in northwest China, shows that the approach is viable as evidenced by a Nash–Sutcliff efficiency of 0.65 and a percent bias of −3.7% for daily streamflow and water balance, respectively. The results indicate that the glacier area decreased by 11% during the simulation period from 1961 to 1999, which is within the range of records from other glaciers. On average, glacier melt contributed 25% to streamflow, although glacier area accounts for only 14% of the catchment drainage area in the MRB. Glacier melt was positively correlated to temperature change (R 2 =0.70, statistical significance P <0.001) and negatively correlated to precipitation (R 2 =0.20, statistical significance P <0.005). The results indicate that glacier melt was more sensitive to temperature change than to precipitation change, implying that modeling the effects of climate change with increasing temperatures and decreasing precipitation should be further studied. [ABSTRACT FROM AUTHOR]