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Remotely sensed rainfall plays an important role in providing efficient approaches for global or regional rainfall analysis. However, the accuracy of satellite-based products is mainly affected by the errors in sensor observation and retrieval algorithms, particularly with respect to extreme rainfall estimates. The objective of this study is to evaluate the accuracy of satellite-based products in capturing rainfall extremes. The eastern coastal areas of China were chosen as the case study area to compare the accuracy of three mainstream satellite-based products with respect to extreme rainfall estimates during 2003–2015 period. This included the Tropical Rainfall Measurement Mission (TRMM) rainfall product 3B42V7, the Climate Prediction Centre Morphing technique RAW (CMORPH-RAW), and the CMORPH bias-corrected product (CMORPH-CRT). In general, all satellite-based products demonstrated numerous errors in extreme rainfall estimates. Based on three different indices of extreme rainfall, it was observed that the satellite-based products underestimated the amounts of rainfall extremes and their respective average values. It was noted that CMORPH-RAW demonstrated the largest relative bias (RB) and underestimated the average extreme rainfall by −31% to −35%. Additionally, all satellite-based products exhibited poor capabilities in capturing the variations in hourly extreme rainfall processes. Finally, a simple potential flood index was developed to simulate the potential flood areas in the eastern coastal areas of China. We found that the potential flood areas can be simulated by combining the potential flood index with the amounts of rainfall derived by satellite-based products. [ABSTRACT FROM AUTHOR]