This study investigates the applicability of error corrections to satellite-based precipitation products in streamflow simulations. A three-year time series (2008–2011) is considered across 19 sub-basins of the Tocantins–Araguaia basin (764,000km2), located in the center-north region of Brazil. A raingauge network (24h accumulation) of approximately 300 collection points (∼1 gauge every 2500km2) is used as reference for evaluating the following four satellite rainfall products: the Tropical Rainfall Measuring Mission real-time 3B42 product (3B42RT), the Climate Prediction Center morphing technique (CMORPH), the Global Satellite Mapping of Precipitation (GSMaP), and the NOAA Hydroestimator (HYDRO-E). Ensemble streamflow simulations, for both dry and rainy seasons, are obtained by forcing the Distributed Hydrological Model developed by the Brazilian National Institute for Space Research (MHD–INPE) with the satellite rainfall products, corrected using a two-dimensional stochastic satellite rainfall error model (SREM2D). The ensemble simulations are evaluated using streamflow output derived by forcing the model with reference rainfall gauge data. SREM2D is able to correct for errors in the satellite precipitation data by pushing the modeled streamflow ensemble closer to the reference river discharge, when compared to the simulations forced with uncorrected rainfall input. Ensemble streamflow error statistics (MAE and RMSE) show a decreasing trend as a function of the catchment area for all satellite products, but the rainfall-to-streamflow error propagation does not show any dependence on the basin size.