The hillslope is an essential natural spatial gradient that influences hydrological processes by affecting water distribution, surface flow, soil erosion, and groundwater recharge. To date, few studies have addressed only the hydrological processes of tropical forest hillslopes. To reveal the effect of hillslope on soil hydrological functioning–including water distribution and exchange, infiltration capacity, and flow behavior–we conducted 36 field infiltration and nine dye-tracer investigations of different hillslope locations in the natural rainforest of Xishuangbanna, southwest China. The soil physical properties–including soil noncapillary and total porosity, saturated water capacity, and field water capacity–decreased with decreasing elevation from hilltop to middle slope and the valley bottom. The water infiltration capacity–including the initial infiltration rate, saturated soil hydraulic conductivity, and average infiltration rate decreased from the hilltop to the valley bottom. Preferential flow dominated soil water movement more in the upper locations than in the valley bottom. The infiltration capacity parameters and preferential flow were significantly correlated with soil water content, noncapillary and total porosity, root biomass, and termite holes. These results indicated that along with the soil physical properties, root systems, animal activity, cracks, and stones affected the soil infiltration capacity and preferential flow. Differences in the hydraulic processes of each hillslope position contributed to the redistribution, transportation, and storage of surface and belowground water, resulting in differing availabilities of soil water resources and utilization by plants. The findings of this study can help understand eco-hydrological processes in the context of water resources management in tropical mountain ecosystems.