Abstract The Ka-band inter-satellite link (ISL) is a key technology of BeiDou Global Navigation Satellite System (BDS-3) that can improve the system performance. Based on 30 days of ISL observations, we analyze the BDS-3 ISL ranging performance and the related influencing factors, such as satellite manufacturer, satellite orbit type and link type. The fitting residuals of the ISL geometry-free observations are used to characterize the measurement noise, and the post-fit ISL residuals from precise orbit determination (POD) and precise clock estimation (PCE) are used to further validate the ranging performance. The fitting residuals follow a normal distribution, and the average root mean square (RMS) value for all 421 links is approximately 2.5 cm. The satellite manufacturers, China Academy of Space Technology (CAST) and Shanghai Engineering Center for Microsatellites (SECM), have an obvious impact on the ISL measurement noise. The RMS of the ISL fitting residuals for the links established by the two CAST satellites is only 1.45 cm, while it can reach 3.34 cm for the links established by the two SECM satellites. This correlation between ISL ranging performance and the satellite manufacturer is also found in the POD and PCE post-fit ISL residuals. The RMS of PCE residuals is about 3.1 cm, while the POD residuals are larger with the RMS of 5.5 cm due to the effect of orbital errors, especially for the Inclined Geosynchronous Orbit (IGSO) and Geostationary Orbit (GEO) satellites. Overall, the ranging accuracy of the BDS-3 ISL is better than 5 cm according to the above analyses. Furthermore, the BDS-3 satellite orbit and clock results are evaluated by internal consistency check and external comparison to analyze the application of ISL observations.