Liquid water cannot exist on the surface of Mars due to low atmospheric pressure, which is about 100 times thinner than Earth's, except at the lowest elevations for short periods. The two polar ice caps appear to be made largely of water The volume of water ice in the south polar ice cap, if melted, would be sufficient to cover the entire planetary surface to a depth of 11 meters (36 ft).A permafrost mantle stretches from the pole to latitudes of about 60.

Large quantities of water ice are thought to be trapped within the thick cryosphere of Mars. Radar data from Mars Express and the Mars Reconnaissance Orbiter show large quantities of water ice both at the poles (July 2005)and at middle latitudes (November 2008). The Phoenix lander directly sampled water ice in shallow Martian soil on July 31, 2008.

Landforms visible on Mars strongly suggest that liquid water has existed on the planet's surface. Huge linear swathes of scoured ground, known as outflow channels, cut across the surface in around 25 places. These are thought to record erosion which occurred during the catastrophic release of water from subsurface aquifers, though some of these structures have also been hypothesized to result from the action of glaciers or lava.One of the larger examples, Ma'adim Vallis is 700 km (430 mi) long and much bigger than the Grand Canyon with a width of 20 km (12 mi) and a depth of 2 km (1.2 mi) in some places. It is thought to have been carved by flowing water early in Mars's history. The youngest of these channels are thought to have formed as recently as only a few million years ago. Elsewhere, particularly on the oldest areas of the Martian surface, finer-scale, dendritic networks of valleys are spread across significant proportions of the landscape. Features of these valleys and their distribution strongly imply that they were carved by runoff resulting from rain or snow fall in early Mars history. Subsurface water flow and groundwater sapping may play important subsidiary roles in some networks, but precipitation was probably the root cause of the incision in almost all cases.

Along crater and canyon walls, there are also thousands of features that appear similar to terrestrial gullies. The gullies tend to be in the highlands of the southern hemisphere and to face the Equator; all are poleward of 30° latitude. A number of authors have suggested that their formation process involves liquid water, probably from melting ice although others have argued for formation mechanisms involving carbon dioxide frost or the movement of dry dust. No partially degraded gullies have formed by weathering and no superimposed impact craters have been observed, indicating that these are young features, possibly even active today.

Mars lost its magnetosphere 4 billion years ago, possibly because of numerous asteroid strikes, so the solar wind interacts directly with the Martian ionosphere, lowering the atmospheric density by stripping away atoms from the outer layer. Both Mars Global Surveyor and Mars Express have detected ionised atmospheric particles trailing off into space behind Mars,and this atmospheric loss is being studied by the MAVEN orbiter. Compared to Earth, the atmosphere of Mars is quite rarefied. Atmospheric pressure on the surface today ranges from a low of 30 Pa (0.030 kPa) on Olympus Mons to over 1,155 Pa (1.155 kPa) in Hellas Planitia, with a mean pressure at the surface level of 600 Pa (0.60 kPa). The highest atmospheric density on Mars is equal to that found 35 km (22 mi) above Earth's surface. The resulting mean surface pressure is only 0.6% of that of Earth (101.3 kPa). The scale height of the atmosphere is about 10.8 km (6.7 mi), which is higher than Earth's (6 km (3.7 mi)) because the surface gravity of Mars is only about 38% of Earth's, an effect offset by both the lower temperature and 50% higher average molecular weight of the atmosphere of Mars.

The atmosphere of Mars consists of about 96% carbon dioxide, 1.93% argon and 1.89% nitrogen along with traces of oxygen and water.The atmosphere is quite dusty, containing particulates about 1.5 µm in diameter which give the Martian sky a tawny color when seen from the surface.

Methane has been detected in the Martian atmosphere with a mole fraction of about 30 ppb; it occurs in extended plumes, and the profiles imply that the methane was released from discrete regions. In northern midsummer, the principal plume contained 19,000 metric tons of methane, with an estimated source strength of 0.6 kilograms per second.The profiles suggest that there may be two local source regions, the first centered near 30°N 260°W and the second near 0°N 310°W.It is estimated that Mars must produce 270 tonnes per year of methane.

The implied methane destruction lifetime may be as long as about 4 Earth years and as short as about 0.6 Earth years. This rapid turnover would indicate an active source of the gas on the planet. Volcanic activity, cometary impacts, and the presence of methanogenic microbial life forms are among possible sources. Methane could also be produced by a non-biological process called serpentinization involving water, carbon dioxide, and the mineral olivine, which is known to be common on Mars.

The Curiosity rover, which landed on Mars in August 2012, is able to make measurements that distinguish between different isotopologues of methane, but even if the mission is to determine that microscopic Martian life is the source of the methane, the life forms likely reside far below the surface, outside of the rover's reach.The first measurements with the Tunable Laser Spectrometer (TLS) indicated that there is less than 5 ppb of methane at the landing site at the point of the measurement.On September 19, 2013, NASA scientists, from further measurements by Curiosity, reported no detection of atmospheric methane with a measured value of 0.18±0.67 ppbv corresponding to an upper limit of only 1.3 ppbv (95% confidence limit) and, as a result, conclude that the probability of current methanogenic microbial activity on Mars is reduced.

The Mars Orbiter Mission by India is searching for methane in the atmosphere,
while the ExoMars Trace Gas Orbiter, planned to launch in 2016, would further study the methane as well as its decomposition products, such as formaldehyde and methanol.On 16 December 2014, NASA reported the Curiosity rover detected a "tenfold spike", likely localized, in the amount of methane in the Martian atmosphere. Sample measurements taken "a dozen times over 20 months" showed increases in late 2013 and early 2014, averaging "7 parts of methane per billion in the atmosphere." Before and after that, readings averaged around one-tenth that level.

Ammonia was also tentatively detected on Mars by the Mars Express satellite, but with its relatively short lifetime, it is not clear what produced it. Ammonia is not stable in the Martian atmosphere and breaks down after a few hours. One possible source is volcanic activity.