Snowfall, snowpack, and snowmelt are among the processes with the greatest influence on the water cycle in mountainous watersheds. Hydrological models may be significantly biased if snow estimations are inaccurate. However, the unavailability of in situ snow data with enough spatiotemporal resolution limits the application of spatially distributed models in snow-fed watersheds. This obliges numerous modellers to reduce their attention to the snowpack and its effect on water distribution, particularly when a portion of the watershed is predominately covered by snow. This research demonstrates the added value of remotely sensed snow cover products from the Moderate Resolution Imaging Spectroradiometer (MODIS) in evaluating the performance of hydrological models to estimate seasonal snow dynamics and discharge. The Soil and Water Assessment Tool (SWAT) model was used in this work to simulate discharge and snow processes in the Oued El Abid snow-dominated watershed. The model was calibrated and validated on a daily basis, for a long period (1981–2015), using four discharge-gauging stations. A spatially varied approach (snow parameters are varied spatially) and a lumped approach (snow parameters are unique across the whole watershed) have been compared. Remote sensing data provided by MODIS enabled the evaluation of the snow processes simulated by the SWAT model. Results illustrate that SWAT model discharge simulations were satisfactory to good according to the statistical criteria. In addition, the model was able to reasonably estimate the snow-covered area when comparing it to the MODIS daily snow cover product. When allowing snow parameters to vary spatially, SWAT model results were more consistent with the observed streamflow and the MODIS snow-covered area (MODIS-SCA). This paper provides an example of how hydrological modelling using SWAT and snow coverage products by remote sensing may be used together to examine seasonal snow cover and snow dynamics in the High Atlas watershed.