e assimilation of satellite soil moisture (SM) products with coarse resolution is promising in improving rainfall-runoff modeling, but it is largely impacted by the data assimilation (DA) strategy. is study performs the assimilation of a satellite soil moisture product from the European Space Agency (ESA) Climate Change Initiative (CCI) in a physically based semidistributed hydrological model (SWAT) in the upper Huai River basin in China, with the objective to improve its rainfall-runoff simulation. In this assimilation, the ensemble Kalman filter (EnKF) is adopted with full consideration of the model and observation error, the rescaling technique for satellite SM, and the regional applicability of the hydrological model. e results show that the ESA CCI SM assimilation generally improves the streamflow simulation of the study catchment. It is more effective for low-flow simulation, while for very high-flow/large-flood modeling, the DA performance shows uncertainty. e less-effective performance on largeflood simulation lies in the relatively low dependence of rainfall-runoff generation on the antecedent SM as during which the SM is nearly saturated and the runoff is largely dominated by precipitation. Besides, the efficiency of DA is deteriorated by the dense forest coverage and the complex topography conditions of the basin. Overall, the ESA CCI SM assimilation improves the streamflow simulation of the SWAT model in particular for low flow. is study provides an encouragement for the application of the ESA CCI SM in water management, especially over low-flow periods.