Abstract. The availability of microwave instruments on satellite platforms allows the retrieval of essential water cycle components at high quality for improved understanding and evaluation of water processes in climate modelling. HOAPS-3, the latest version of the satellite climatology "Hamburg Ocean Atmosphere Parameters and Fluxes from Satellite Data" provides fields of turbulent heat fluxes, evaporation, precipitation, freshwater flux and related atmospheric variables over the global ice-free ocean. This paper describes the content, methodology and retrievals of the HOAPS climatology. A sophisticated processing chain, including all available Special Sensor Microwave Imager (SSM/I) instruments aboard the satellites of the Defense Meteorological Satellites Program (DMSP) and careful inter-sensor calibration, ensures a homogeneous time-series with dense data sampling and hence detailed information of the underlying weather situations. The completely reprocessed data set with a continuous time series from 1987 to 2005 contains neural network based algorithms for precipitation and wind speed and Advanced Very High Resolution Radiometer (AVHRR) based SST fields. Additionally, a new 85 GHz synthesis procedure for the defective SSM/I channels on DMSP F08 from 1988 on has been implemented. Freely available monthly and pentad means, twice daily composites and scan-based data make HOAPS-3 a versatile data set for studying ocean-atmosphere interaction on different temporal and spatial scales. HOAPS-3 data products are available via http://www.hoaps.org.