Abstract The terrestrial water cycle in the Australian Community Atmosphere Biosphere Land Exchange (CABLE) model has been evaluated across a range of temporal and spatial domains. A series of offline experiments were conducted using the forcing data from the second Global Soil Wetness Project (GSWP-2) for the period of 1986–95, but with its default parameter settings. Results were compared against GSWP-2 multimodel ensembles and a range of observationally driven datasets. CABLE-simulated global mean evapotranspiration (ET) and runoff agreed well with the GSWP-2 multimodel climatology and observations, and the spatial variations of ET and runoff across 150 large catchments were well captured. Nevertheless, at regional scales it underestimated ET in the tropics and had some significant runoff errors. The model sensitivity to a number of selected parameters is further examined. Results showed some significant model uncertainty caused by its sensitivity to soil wilting point as well as to the root water uptaking efficiency and canopy water storage parameters. The sensitivity was large in tropical rain forest and midlatitude forest regions, where the uncertainty caused by the model parameters was comparable to a large part of its difference against the GSWP-2 multimodel mean. Furthermore, the discrepancy among the CABLE perturbation experiments caused by its sensitivity to model parameters was equivalent to about 20%–40% of the intermodel difference among the GSWP-2 models, which was primarily caused by different model structure/processes. Although such results are model dependent, they suggest that soil/vegetation parameters could be another source of uncertainty in estimating global surface energy and water budgets.