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Due to the high elevation, complex terrain, severe weather, and inaccessibility, direct meteorological observations do not exist over large portions of the Tibetan Plateau, especially the western part of it. Satellite rainfall estimates have been very important sources for precipitation information, particularly in rain gauge-sparse regions. In this study, Tropical Rainfall Measuring Mission (TRMM) Multi-satellite Precipitation Analysis (TMPA) products 3B42, RTV5V6, and RTV7 were evaluated for their applicability to the upper Yellow and Yangtze River basins on the Tibetan Plateau. Moreover, the capability of the TMPA products to simulate streamflow was also investigated using the Variable Infiltration Capacity (VIC) semi-distributed hydrological model. Results show that 3B42 performs better than RTV5V6 and RTV7, based on verification of the China Meteorological Administration (CMA) observational precipitation data. RTV5V6 can roughly capture the spatial precipitation pattern but overestimation exists throughout the entire study region. The anticipated improvements of RTV7 relative to RTV5V6 have not been realized in this study. Our results suggest that RTV7 significantly overestimates the precipitation over the two river basins, though it can capture the seasonal cycle features of precipitation. 3B42 shows the best performance in streamflow simulation of the abovementioned satellite products. Although involved in gauge adjustment at a monthly scale, 3B42 is capable of daily streamflow simulation. RTV5V6 and RTV7 have no capability to simulate streamflow in the upper Yellow and Yangtze River basins.