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Estimation of downward shortwave radiation (DSR) is of great importance in global energy budget and climatic modeling. Although various algorithms have been proposed, effective validation methods are absent for rugged terrains due to the lack of rigorous methodology and reliable field measurements. We propose a two-step validation method for rugged terrains based on computer simulations. The first step is to perform point-to-point validation at local scale. Time-series measurements were applied to evaluate a three-dimensional (3-D) radiative transfer model. The second step is to validate the DSR at pixel-scale. A semiempirical model was built up to interpolate and upscale the DSR. Key terrain parameters were weighted by empirical coefficients retrieved from ground-based observations. The optimum number and locations of ground stations were designed by the 3-D radiative transfer model and Monte Carlo method. Four ground stations were selected to upscale the ground-based observations. Additional three ground stations were set up to validate the interpolated results. The upscaled DSR was finally applied to validate the satellite products provided by MODIS and Himawari-8. The results showed that the modeled and observed DSR exhibited good consistency at point scale with correlation coefficients exceeding 0.995. The average error was around 20 W/m2 for the interpolated DSR and 10 W/m2 for the upscaled DSR in theory. The accuracies of the satellite products were acceptable at most times, with correlation coefficients exceeding 0.94. From an operational point of view, our method has an advantage of using small amount of ground stations to upscale DSR with relatively high accuracy over rugged terrains. [ABSTRACT FROM AUTHOR]