Understanding of exchange processes over Tibetan Plateau including hydrological cycle is becoming increasingly important since their influence on the formation of the Asian monsoon system is known. Tibetan Plateau is source area for main Asian rivers that are of crucial importance for downstream communities of China, India, Bangladesh, Pakistan and SE Asia. Accurate and up-to date information of the characteristics and the current trend of these changes, provided by modern satellite systems like TerraSAR-X, are thus needed. The study area is delimited by the watershed of Nam Co basin on Tibetan Plateau in Tibet Autonomous Region of China approximately 100 km NNW from Lhasa. The no-outlet basin of the lake offers an excellent example of landscape unit characteristic for Tibetan Plateau where all exchange processes between land and atmosphere can be studied. Hydrologic modeling of Nam Co basin will be supported by complex interpretation of TerraSAR-X data that will provide whole set of hydrologic parameters. The TerraSAR data will be processed in synergy with other available microwave and optical remote sensing data sets. Basic extracted variables will be thus transformed into meaningful hydrological parameters. Data evaluation will take into account various aspects of landscape qualities with respect to water cycle. Variability of lake level, seasonal changes of soil moisture, influence of wetlands, lake icing and snow melt will be estimated. The synergetic approach to interpretation of TerraSAR-X data will benefit from major advantages of the high spatial resolution, the fast repetition cycle and the full-polarimetric capabilities in combination with high resolution optical data (RapidEye, QuickBird, Kompsat-2, ASTER. Landsat etc.) and digital elevation models.