Several multifrequency techniques for passive microwave estimation of precipitation based on the absorption and scattering properties of hydrometeors have been proposed in the literature. In the present study, plane-parallel limitations are overcome by using a model based on the discrete-ordinates method to solve the radiative transfer equation in three-dimensional rectangular domains. This effectively accounts for the complexity and variety of radiation problems encountered in the atmosphere. This investigation presents results for plane-parallel and three-dimensional radiative transfer for a precipitating system, discusses differences between these results, and suggests possible explanations for these differences. Microphysical properties were obtained from the Colorado State University Regional Atmospheric Modeling System and represent a hailstorm observed during the 1986 Cooperative Huntsville Meteorological Experiment. These properties are used as input to a three-dimensional radiative transfer model in order to simulate satellite observation of the storm. The model output consists of upwelling brightness temperatures at several of the frequencies on the Special Sensor Microwave/Imager. The radiative transfer model accounts for scattering and emission of atmospheric gases and hydrometeors in liquid and ice phases. Brightness temperatures obtained from the three-dimensional model of this investigation indicate that horizontal inhomogeneities give rise to brightness temperature fields that can be quite different from fields obtained using plane-parallel radiative transfer theory. These differences are examined for various resolutions of the satellite sensor field of view. In addition, the issue of boundary conditions for three-dimensional atmospheric radiative transfer is addressed.