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A modified Liu analytical model of rainfall interception (I_c) by tree canopies was evaluated using rainfall, throughfall and stemflow data collected from forest restoration trials in the Republic of Panama. The model uses an introduced approach to estimating the water storage capacities of tree boles, which has a more realistic physical basis than earlier iterations of the Liu model. Study species (Acacia mangium, Gliricidia sepium, Guazuma ulmifolia, Ochroma pyramidale, and Pachira quinata) were selected on the basis of differing leaf size and crown characteristics. Significant interspecific differences in both observed and simulated cumulative interception loss were found, with A. mangium intercepting more rainfall than other species. Errors between calculated and modelled cumulative I_c ranged from + 6·3% to + 30·5%, with modelled I_c always being the larger term. During‐event evaporation rates from the study …