Spatial smoothing of functional magnetic resonance imaging (fMRI) data can be performed on volumetric images and on the extracted surface of the brain. Smoothing on the unfolded cortex should theoretically improve the ability to separate signals between brain areas that are near together in the folded cortex but are more distant in the unfolded cortex. However, surface-based method approaches (SBA) are currently not utilized as standard procedure in the preprocessing of neuroimaging data. Recent improvements in the quality of cortical surface modeling and improvements in its usability nevertheless advocate this method. In the current study, we evaluated the benefits of an up-to-date surface-based smoothing in comparison to volume-based smoothing. We focused on the effect of signal contamination between different functional systems using the primary motor and primary somatosensory cortex as an example. We were particularly interested in how this signal contamination influences the results of activity and connectivity analyses for these brain regions. We addressed this question by performing fMRI on 19 subjects during a tactile stimulation paradigm and by using simulated BOLD responses. We demonstrated that volume-based smoothing causes contamination of the primary motor cortex by somatosensory cortical responses, leading to false positive motor activation. These false positive motor activations were not found by using surface-based smoothing for reasonable kernel sizes. Accordingly, volume-based smoothing caused an exaggeration of connectivity estimates between these regions. In conclusion, this study showed that surface-based smoothing decreases signal contamination considerably between neighboring functional brain regions and improves the validity of activity and connectivity results.