Diffuse solar radiation is subject to the combined influence of ground and sky factors, such as topography, geography of the area and cloud cover. This study attempts to quantify the impacts of topography, sky factors and the cloud cover on the distribution of diffuse solar radiation over Pakistan. Distributed modeling approach by considering anisotropy scattering mechanism was adopted. Digital elevation model and observed data are used to derive average monthly diffuse solar radiation values over the rugged terrains of Pakistan. Extraterrestrial solar radiation model, sky view factor model (openness model) and digital elevation model (DEM) are applied to investigate the impacts of ground factors, while diffuse solar radiation model for horizontal surface was considered for sky factors. Furthermore, corrected MODIS cloud fraction data are incorporated using GIS plat form. Results show that the highest amount of diffused solar radiation occurs during the monsoon months along the eastern side of the River Indus, when the sky is covered by clouds of various heights and densities. The variation due to topography is evident in mountainous areas, particularly in the North Pakistan and over the Baluchistan Plateau.