<p>Satellite-based precipitation products (SPPs) are an important method for measuring and analyzing rainfall, especially in areas with limited rain-gauge networks. These products offer more reliable coverage and are valuable for various environmental applications, such as precipitation analysis, hydrological modeling, and drought monitoring. Unlike ground-based rain gauges, SPPs provide more evenly distributed coverage over large areas using sophisticated infrared and microwave instruments to detect precipitation. A number of satellite-based rainfall products have been developed and successfully implemented, including GSMaP, PERSIANN, TRMM, CHIRPS, and GPM IMERG. However, there are several drawbacks in employing SPPs, such as lacking the capacity to measure the temporal and spatial variability of the daily precipitation rate due to instrument uncertainties, particularly over large areas. SPPs may be inaccurate due to variations in the quality of data collected directly from rain gauges. Hence, it is essential to understand the limitations and potential biases of these products. This comprehensive review aims to address the challenges in obtaining reliable precipitation data, particularly in developing countries, and investigates the potential of SPPs as a solution by emphasizing their importance for accurate precipitation estimation for climate change analysis, extreme event prediction, and hydrological impact assessment. The methodology for selecting relevant literature on satellite-based high-resolution precipitation products is discussed, along with the characteristics and applications of various SPPs. This highlights the need for future research to improve the accuracy and reliability of SPPs. Overall, SPPs offer a valuable substitute to traditional rain gauge data; however, their limitations should be carefully considered when interpreting and utilizing the data for different applications.</p>