Observations regarding the enhanced water vapor exchange as a direct feedback to increased diffuse radiation are presented and discussed using a synthesis of the observations over North America and China. The implications of these findings for the radiative transfer schemes and surface energy balance features within WRF and Noah land surface model are identified. A strategy for testing this feedback using data from the IHOP field experiment and the Tibetean Energy Balance experiment and for coupling these features in the models is presented. Results from comparison of the photosynthesis and nonphotosynthesis schemes on transpirative feedback and the role of diffuse radiation in this setup is also presented. Model results with the cases over the two domains under the control and modified model configuration (diffuse radiation, land surface scheme change) will be presented.