• We proposed a two-step calibration based parameter regionalization method. • This method combines spatial proximity method and RS ET based parameter calibration method. • The proposed regionalization method achieves the overall best model performance. • The accuracy of RS ET is the main factor affecting the performance of the proposed method. Runoff prediction in ungauged catchments is an important and challenging research topic in the field of hydrology. However, traditional parameter regionalization methods may not be applicable in regions with sparsely distributed hydrological stations. Remote sensing (RS) evapotranspiration (ET) products provide valuable information for model parameter estimations. This study aimed to improve the accuracy of hydrological modeling in ungauged catchments by combining the traditional spatial proximity (SP) method with the RS ET-based parameter calibration method to form a two-step calibration-based regionalization method (SP-bcET method using bias-corrected RS ET data and SP-rawET method using raw RS ET data). The proposed regionalization scheme is demonstrated by using the variable infiltration capacity model in the Yangtze River Basin, China, and its performance was evaluated and compared with the SP method and two RS ET-based parameter calibration schemes (bcET method using bias-corrected RS ET data and rawET method using raw RS ET data). The results indicate that the bcET method performs better than the rawET method, the SP method outperforms the RS ET-based parameter calibration method, and the SP-bcET and SP-rawET methods achieve the best overall performance among the five methods. Taking the simulated streamflow at a daily scale in the calibration period as an example, the average Nash-Sutcliffe coefficient of efficiency for the SP, bcET, rawET, SP-bcET, and SP-rawET methods were 0.69, 0.61, 0.56, 0.71, and 0.71, respectively. Moreover, the SP-bcET and SP-rawET methods improved the simulation of the temporal dynamics and spatial variability of soil moisture anomalies. The accuracy of the RS ET data was one of the most dominant factors affecting the performance of the proposed parameter regionalization scheme. The SP-bcET method is expected to perform better than the SP method in warmer catchments or when gauged catchments are sparely distributed. The findings demonstrate the great potential of combining the traditional parameter regionalization and RS ET-based parameter calibration methods in hydrological simulations in ungauged catchments.