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DSM generation using stereo satellites is an important topic for many applications. China has launched the three line ZY-3 stereo mapping satellite last year. This paper evaluates the ZY-3 performance for DSM and orthophoto generation on two scenes east of Munich. The direct georeferencing performance is tested using survey points, and the 3D RMSE is 4.5 m for the scene evaluated in this paper. After image orientation with GCPs and tie points, a DSM is generated using the Semi-Global Matching algorithm. For two 5 × 5 km² test areas, a LIDAR reference DTM was available. After masking out forest areas, the overall RMSE between ZY-3 DSM and LIDAR reference is 2.0 m (RMSE). Additionally, qualitative comparison between ZY-3 and Cartosat-1 DSMs is performed.