For time-variable satellite gravity solutions of GRACE and GRACE-FO in terms of spherical harmonics coefficients, the Scale Factor (SF) is often used to recover the close to “true” signal of Terrestrial Water Storage (TWS) anomalies. However, the conventional SF method has some limitations that may hinder its effectiveness, including: (1) their dependency on input hydrological models that may lead to divergent estimations of SFs; (2) the arbitrary choice of filter strength, which may not be representative in different regions; (3) limited consideration of SF in the temporal dynamics (the conventional SF was fixed value) for monthly varied TWS. Here, we propose a new Dynamic SF method to overcome these limitations and increase accuracy of the restored global TWS changes. This method involves: (1) the Bayesian Three-Cornered Hat (BTCH) method is applied to merge three sets of hydrological products into an optimal hydrological dataset to be used for estimating a unique SF, (2) the anisotropic DDK3 filter (found to be numerically optimal) is applied to suppress the correlated noise, and (3) an iterative Kalman filter process is formulated and implemented to estimate monthly Dynamic SF corresponding to monthly global TWS fields. The Dynamic SF outperformed an ordinary SF method in terms of the Root Mean Squared Error (RMSE), the Mean Absolute Error (MAE), and the Signal to Noise Ratio (SNR), which were found to be improved by 30.8%, 32.2%, and 41.3%, respectively. Moreover, the recovered TWS using the Dynamic SF method showed a good agreement with the GRACE/GRACE-FO RL06 mascon solutions of the CSR and that of JPL regarding the long-term trend, seasonal, and interannual variations.
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