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Although soil moisture (SM) is an important constraint factor of evapotranspiration (ET), the majority of the satellite-driven ET models do not include SM observations, especially the SM at different depths, since its spatial and temporal distribution is difficult to obtain. Based on monthly three-layer SM data at a 0.25° spatial resolution determined from multi-sources, we updated the original Priestley Taylor–Jet Propulsion Laboratory (PT-JPL) algorithm to the Priestley Taylor–Soil Moisture Evapotranspiration (PT-SM ET) algorithm by incorporating SM control into soil evaporation (Es) and canopy transpiration (T). Both algorithms were evaluated using 17 eddy covariance towers across different biomes of China. The PT-SM ET model shows increased R2, NSE and reduced RMSE, Bias, with more improvements occurring in water-limited regions. SM incorporation into T enhanced ET estimates by increasing R2 and NSE by 4% and 18%, respectively, and RMSE and Bias were respectively reduced by 34% and 7 mm. Moreover, we applied the two ET algorithms to the whole of China and found larger increases in T and Es in the central, northeastern, and southern regions of China when using the PT-SM algorithm compared with the original algorithm. Additionally, the estimated mean annual ET increased from the northwest to the southeast. The SM constraint resulted in higher transpiration estimate and lower evaporation estimate. Es was greatest in the northwest arid region, interception was a large fraction in some rainforests, and T was dominant in most other regions. Further improvements in the estimation of ET components at high spatial and temporal resolution are likely to lead to a better understanding of the water movement through the soil–plant–atmosphere continuum. [ABSTRACT FROM AUTHOR]