Because of the use of outdated terrestrial datasets, regional climate models (RCMs) have a limited ability to accurately simulate weather and climate conditions over heterogeneous oasis-desert systems, especially near large mountains. Using actual terrestrial datasets from satellite products for RCMs is the only possible solution to the limitation; however, it is impractical for long-period simulations due to the limited satellite products available before 2000 and the extremely time- and labor-consuming processes involved. In this study, we used the Weather Research and Forecasting (WRF) model with observed estimates of land use (LU), albedo, Leaf Area Index (LAI), and green Vegetation Fraction (VF) datasets from satellite products to examine which terrestrial datasets have a great impact on simulating water and heat conditions over heterogeneous oasis-desert systems in the northern Tianshan Mountains. Five simulations were conducted for 1–31 July in both 2010 and 2012. The decrease in the root mean squared error and increase in the coefficient of determination for the 2 m temperature (T2), humidity (RH), latent heat flux (LE), and wind speed (WS) suggest that these datasets improve the performance of WRF in both years; in particular, oasis effects are more realistically simulated. Using actual satellite-derived fractional vegetation coverage data has a much greater effect on the simulation of T2, RH, and LE than the other parameters, resulting in mean error correction values of 62%, 87%, and 92%, respectively. LU data is the primary parameter because it strongly influences other secondary land surface parameters, such as LAI and albedo. We conclude that actual LU and VF data should be used in the WRF for both weather and climate simulations.