Hydrological, ecohydrological, and terrestrial biosphere models depend on pedotransfer functions for computing soil hydraulic parameters based on easily measurable variables, such as soil textural and physical properties. Several pedotransfer functions have been derived in the last few decades, providing divergent estimates of soil hydraulic parameters. In this study, we quantify how uncertainties embedded in using different pedotransfer functions propagate to ecosystem dynamics, including simulated hydrological fluxes and vegetation response to water availability. Using a state-of-the-art ecohydrological model applied at 79 sites worldwide, we show that uncertainties related to pedotransfer functions can affect both hydrological and vegetation dynamics. Uncertainties in evapotranspiration, plant productivity, and vegetation structure, quantified as leaf area, are in the order of ∼10% at annual time scales. Runoff and groundwater recharge uncertainties are one order of magnitude larger. All uncertainties are largely amplified when small-scale topography is taken into account in a distributed domain, especially for water-limited ecosystems with low permeability soils. Overall, pedotransfer function related uncertainties for a given soil type are higher than uncertainties across soil types in both hydrological and ecosystem dynamics. The magnitude of uncertainties is climate-dependent but not soil type-dependent. Evapotranspiration, vegetation structure, and plant productivity uncertainties are higher in water-limited semiarid climates, whereas groundwater recharge uncertainties are higher in climates where potential evapotranspiration is comparable to precipitation.