In this paper the land surface model embedded in the PALM model system is described and evaluated against in situ measurements at Cabauw, Netherlands. A total of 2 consecutive clear-sky days are simulated, and the components of surface energy balance, potential temperature, humidity, and horizontal wind speed are compared to observations. For the simulated period, components of the energy balance are consistent with daytime and nighttime observations, and the daytime Bowen ratio also agrees fairly well with observations. The model simulates a more stably stratified nocturnal boundary layer than the observations, and near-surface potential temperature and humidity agree fairly well during the day. Moreover, a sensitivity analysis is performed to investigate dependence of the model on land surface and soil specifications, as well as atmospheric initial conditions, because they represent a major source of uncertainty in the simulation setup. It is found that an inaccurate estimation of leaf area index, albedo, or initial humidity causes a significant misrepresentation of the daytime turbulent sensible and latent heat fluxes. During the night, the boundary-layer characteristics are primarily affected by surface roughness and the applied radiation schemes.