A new gauge-based analysis of daily precipitation has been constructed on a 0.5° latitude-longitude grid over East Asia (5°-60°N, 65°-155°E) for a 26-yr period from 1978 to 2003 using gauge observations at over 2200 stations collected from several individual sources. First, analyzed fields of daily climatology are computed by interpolating station climatology defined as the summation of the first six harmonics of the 365-calendar-day time series of the mean daily values averaged over a 20-yr period from 1978 to 1997. These fields of daily climatology are then adjusted by the Parameter-Elevation Regressions on Independent Slopes Model (PRISM) monthly precipitation climatology to correct the bias caused by orographic effects. Gridded fields of the ratio of daily precipitation to the daily climatology are created by interpolating the corresponding station values using the optimal interpolation method. Analyses of total daily precipitation are finally calculated by multiplying the daily climatology by the daily ratio. Cross-validation tests indicated that this gauge-based analysis has high quantitative quality with a negligible bias and a correlation coefficient of ∼0.6 for comparisons between withdrawn station data and the analysis at a 0.05° latitude-longitude grid box. The quality of the analysis increases with the gauge network density. The mean distribution and annual cycle of this new gauge analysis present similar patterns but with more detailed structures and slightly larger magnitude compared to other published monthly gauge analyses over the region. The East Asia gauge analysis is applied to verify the performance of five satellite-based precipitation estimates. This examination reveals the regionally and seasonally dependent performance of the satellite products with the best statistics observed for relatively wet regions. Further improvements of the daily gauge analysis are underway to increase the gauge network density and to refine the algorithm to better deal with the orographic effects especially over South and Southeast Asia.