Toward the achievement of reliable global kilometer-scale (k-scale) climate simulations, we improve the Nonhydrostatic ICosaherdral Atmospheric Model (NICAM) by focusing on moist physical processes. A goal of the model improvement is to establish a configuration that can simulate realistic fields seamlessly from the daily-scale variability to the climatological statistics. Referring to the two representative configurations of the present NICAM, of which each has been used for climate-scale and sub-seasonal-scale experiments, we try to find the appropriate partitioning of fast/local and slow/global-scale circulations. In a series of sensitivity experiments at 14-km horizontal mesh, (1) the tuning of terminal velocities of rain, snow, and cloud ice, (2) the implementation of turbulent diffusion by the Leonard term, and (3) enhanced vertical resolution are tested. These tests yield reasonable convection triggering and convection-induced tropospheric moistening, and result in better performance than in previous NICAM climate simulations. In the mean state, double Intertropical Convergence Zone bias disappears, and the zonal contrast of equatorial precipitation, top-of-atmosphere radiation balance, vertical temperature profile, and position/strength of subtropical jet are dramatically better reproduced. Variability such as equatorial waves and the Madden–Julian oscillation (MJO) is spontaneously realized with appropriate spectral power balance, and the Asian summer monsoon, boreal-summer MJO, and tropical cyclone (TC) activities are more realistically simulated especially around the western Pacific. Meanwhile, biases still exist in the representation of low-cloud fraction, TC intensity, and precipitation diurnal cycle, suggesting that both finer spatial resolutions and the further model development are warranted.