Watersheds in cold regions provide water, food, biodiversity and ecosystem service. However, the increasing demand for water resources and climate change challenge our ability to provide clean freshwater. Particularly, watersheds in cold regions are more sensitive to changing climate due to their glaciers’ retreat and permafrost. This review revisits watershed system and processes. We analyze principles of watershed modelling and characteristics of watersheds in cold regions. Then, we show observed evidence of their impacts of cold processes on hydrological and biogeochemical processes and ecosystems, and review the watershed modeling and their applications in cold regions. Finally, we identify the knowledge gaps in modeling river basins according to model structures and representations of processes and point out research priorities in future model development.