Ancient valley networks (VNs) and related open‐ and closed‐basin lakes are testimony to the presence of flowing liquid water on the surface of Mars in the Late Noachian and Early Hesperian. Uncertain, however, has been the mechanism responsible for causing the necessary rainfall and runoff and/or snowfall and subsequent melting. Impact cratering has been proposed (e.g., Segura et al. 2002) as a process for temporarily raising temperatures and inducing conditions that would produce rainfall, snowmelt, runoff, and formation of the VNs and associated lacustrine features. We refer to the collective effects of this process as the ICASE model (impact cratering atmospheric/surface effects). In this contribution, we assess the proposed impact cratering mechanism in order to understand its climatic implications for early Mars: we outline the step‐by‐step events in the cratering process and explore the predictions for atmospheric and surface geological consequences. For large and basin‐scale impacts, rainfall should be globally and homogeneously distributed and characterized by very high temperatures. Rainfall rates are predicted to be high, ~2 m yr−1, similar to rates in tropical rainforests on Earth, and runoff rates are correspondingly very high. These predicted characteristics do not seem to be consistent with the observed VNs, which are mainly equatorial and not homogeneous in their distribution. Prior to the Late Noachian, however, we predict that basin‐scale impact effects are very likely to contribute significantly to degradation of crater rims and regional smoothing of terrain, implying vast resurfacing and resetting of crater ages following large crater and basin‐scale impacts. Furthermore, the high temperatures of impact‐induced rainwater and snowmelt and the pervasive penetration of heat into the regolith substrate are predicted to have a significant influence on the mineralogical alteration of the crust and its resulting physical properties. We conclude by describing a case example (Isidis basin) and describe how the ICASE model provides an alternative scenario for the interpretation of the layered phyllosilicates in the Nili Fossae and NE Sytris regions. We outline specific conclusions and recommendations designed to improve the ICASE model and to promote further understanding of its implications for the geological, mineralogical, and climate history of early Mars.