AbstractUnderstanding key hydrological processes and properties is critical to sustaining the ecological, economic, social and cultural roles of Canada's varied forest types. This review examines recent progress in studying the hydrology of Canada's forest landscapes. Work in some areas, such as snow interception, accumulation and melt under forest cover, has led to modelling tools that can be readily applied for operational purposes. Our understanding in other areas, such as the link between runoff‐generating processes in different forest landscapes and hydrochemical fluxes to receiving waters, is much more tentative. The 1999–2003 period saw considerable research examining hydrological and biogeochemical responses to natural and anthropogenic disturbance of forest landscapes, spurred by major funding initiatives at the provincial and federal levels. This work has provided valuable insight; however, application of the findings beyond the experimental site is often restricted by such issues as a limited consideration of the background variability of hydrological systems, incomplete appreciation of hydrological aspects at the experiment planning stage, and experimental design problems that often bedevil studies of basin response to disturbance. Overcoming these constraints will require, among other things, continued support for long‐term hydroecological monitoring programmes, the embedding of process measurement and modelling studies within these programmes, and greater responsiveness to the vagaries of policy directions related to Canada's forest resources. Progress in these and related areas will contribute greatly to the development of hydrological indicators of sustainable forest management in Canada. Copyright © 2005 John Wiley & Sons, Ltd.