High spectral resolution radiances of Hyperspectral Environmental Suite (HES) on Geostationary Operational Environmental Satellite (GOES-R and beyond) are simulated by a fast transfer model using cube data from the Mesoscale Model (MM5). The HES is slated to be launched in 2013. The atmospheric and cloud parameters were created from MM5 with 1.3 km spatial resolution and 0.5 hour temporal resolution. Various aspects of HES radiances including spatial and temporal resolutions, accuracy of temperature and moisture sounding retrieval are simulated with the cube data generated during the International H2O Project (IHOP) field experiment in June 2002. The atmospheric temperature and moisture profiles are retrieved by eigenvector regression retrieval with all the spectral channels followed by a nonlinear iterative physical retrieval with optimally selected channels in clear skies. The retrieved results show that HES enables monitoring the evolution of detailed temperature and moisture structures. The retrieval accuracy of air temperature and water vapor is approximately 1 K for temperature in 1 km vertical layers and 10% relative humidity for water vapor in 2 km vertical layers.