Soil moisture dynamics have a significant effect on overland flow generation. Catchment aspect is one of the major controlling factors of overland flow and soil moisture behaviour. A few experimental studies have been carried out in the uneven topography of the Himalayas. This study presents plot‐scale experiments using portable rainfall simulator at an altitude of 1,230 m above mean sea level and modelling of overland flow using observed datasets. Two plots were selected in 2 different aspects of Aglar watershed of Lesser Himalaya; the agro‐forested (AF) plot was positioned at the north aspect whereas the degraded (DE) plot was located at the south aspect of the hillslope. HS flumes and rain gauges were installed to measure the runoff at the outlet of the plot and the rainfall depth during rainfall simulation experiments. Moreover, 10 soil moisture sensors were installed at upslope and downslope locations of both the plots at 5, 15, 25, 35, and 45 cm depth from ground level to capture the soil moisture dynamics. The tests were conducted at intensities of 79.8 and 75 mm/hr in AF plot and 82.2 and 72 mm/hr in the DE plot during Test 1 and Test 2, respectively. The observed data indicate the presence of reinfiltration process only in the AF plot. The high water holding capacity and the presence of reinfiltration process results in less runoff volume in the AF plot compared with the DE plot. The Hortonian overland flow mechanism was found to be the dominant overland flow mechanism as only a few layers of top soil get saturated during all of the rainfall–runoff experiments. The runoff, rainfall, and soil moisture data were subsequently used to calibrate the parameters of HYDRUS‐2D overland flow module to simulate the runoff hydrograph and soil moisture. The components of hydrograph were evaluated in terms of peak discharge, runoff volume and time of concentration, the results were found to be within the satisfactory range. The goodness of fit of simulated hydrographs were more than 0.85 and 0.95 for AF and DE plot, respectively. The model produced satisfactory simulation results of soil moisture for all of the rainfall–runoff experiments. The HYDRUS‐2D overland flow module was found promising to simulate the runoff hydrograph and soil moisture in plot‐scale research.