Remote sensing contributes valuable information to streamflow estimates. This paper discusses its relevance to the digital earth concept. The authors categorize the role of remote sensing in streamflow modelling and estimation. This paper emphasizes the applications and challenges of satellite-based products in streamflow modelling. Importance and application of streamflow models is firstly described. Then, different classifications of models, modelling processes and several uncertainties sources that affect models prediction are explained. In addition, we explore the advantages of satellite precipitation estimates in modelling, uncertainties in remotely sensed data and some improvement techniques. The connection, relationship and contribution of remote sensing for streamflow modelling to digital earth principle are identified. Finally, we define and illustrate the future directions and necessary developments of streamflow measurement by remote sensing.