The Ili River Basin is characterized by complex topography and diverse climatic zones with limited in situ observations. This study evaluates the performance of six widely used precipitation datasets, CHIRPS (Climate Hazards Group InfraRed Precipitation with Station data), ERA5_Land (European Centre for Medium-Range Weather Forecasts—ECMWF Reanalysis 5_Land), GPCC (Global Precipitation Climatology Centre), IMERG (Integrated Multi-satellite Retrievals for GPM), PERSIANN (Precipitation Estimation from Remotely Sensed Information using Artificial Neural Networks), and TerraClimate, against ground-based data from 2001 to 2023. The evaluation is conducted across multiple spatial scales and temporal resolutions. At the basin scale, most datasets exhibit strong correlations with in situ observations across all temporal scales (r > 0.7), except for PERSIANN, which demonstrates a relatively weaker performance during summer and winter (r < 0.6). All datasets except ERA5_ Land show low annual and monthly bias (<5%), although larger errors are observed during summer, particularly for IMERG and PERSIANN. Dataset performance generally declines with increasing elevation. Basin-wide gridded evaluations reveal distinct spatial variations across all elevation zones, with CHIRPS showing the strongest ability to capture orographic precipitation gradients throughout the basin. All datasets correctly identified 2008 as a drought year and 2016 as a wet year, even though the magnitude and spatial resolution of the anomalies varied among them. These findings highlight the importance of selecting precipitation datasets that are suited to the complex topographic and climatic characteristics of transboundary basins. Our study provides valuable insights for improving hydrological modeling and can be used for water sustainability and flood–drought mitigation support activities in the Ili River Basin.