Digital elevation models (DEMs) are an essential component of spatial data infrastructures. For DEM production, airborne laser scanning has offered a high cost-effectiveness together with high level of quality and new global DEMs has brought the spatial coverage unseen before. New DEM products and the current knowledge about DEM quality set the need for developing new methods for communicating about uncertainty from the application perspective. The objective is to develop methods to model and simulate uncertainty of DEMs and to implement the methods in an interactive uncertainty-aware terrain analysis toolbox. The toolbox will enable the visual analytical reasoning about the influence of data uncertainty to specific application areas. Feasibility of the study will be tested in real-world applications from the project partners. The results will be applicable for environmental monitoring and decision support, hazard mapping, development of national SDI, and urban planning purposes.