A distributed physically based variable parameter Muskingum discharge routing (VPMD) method, which is derived directly from the Saint-Venant equations (SVE) considering uniform lateral flow, is presented for generating runoff from the overland flow plane. The operational performance of the method is carried out using the observed rainfall-runoff data (Izzard data) available in literature based on various evaluation measures. Besides, the simulation results are also evaluated by comparing with the corresponding solutions of the SVE obtained using the explicit numerical scheme. The study demonstrates that the proposed VPMD method is advantageous over the currently used numerical solution methods for overland flow simulation because of its unconditional numerical stability and high accuracy with larger degree of flexibility in the selection of computational spatial and temporal grid sizes leading to efficient and inexpensive computations. These capabilities imply its suitability for coupling with various land surface schemes available for meso-and microscale catchment modeling studies.