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Satellite-based precipitation products are expected to offer an alternative to ground-based rainfall estimates in the present and the foreseeable future. In this paper, we evaluate the performance of TRMM 3B42 precipitation products in the Yangtze River basin for the period of 2003~2010. The results are as follows: (1) the performance of RTV7 (V7) products is generally better than that of RTV6 (V6) in the Yangtze River basin, and the percentage of best performance (bias ranging within −10%~10%) for the annual mean precipitation increases from 21.72% (54.79%) to 36.70% (59.85%) as the RTV6 (V6) improved to the RTV7 (V7); (2) the TMPA products have better performance in the wet period than that in the dry period in the Yangtze River basin; (3) the performance of TMPA precipitation has been affected by the elevation and a downward trend can be found with the increasing elevation in the Yangtze River basin. The average CC between the V7 and observed precipitation in July decreases from 0.71 to 0.40 with the elevation of gauge stations increasing from 500 m below to 4000 m above in the Yangtze River basin. More attention should be paid to the influence of complex climate and topography. [ABSTRACT FROM AUTHOR]