Underestimation of the proportion of supercooled liquid in mixed‐phase clouds in climate models has called into question its impact on Arctic climate change. We show that correcting for this bias in the CESM model can either enhance or reduce Arctic amplification depending on the microphysical characteristics of the clouds as a corollary to the cloud phase feedback. Replacement of ice with liquid in the cloud phase feedback results in more downward longwave radiation, which is effectively trapped as heat at the surface in the Arctic due to its unique stable stratification conditions, and this ultimately leads to a more positive lapse rate feedback. The larger the ice particles are to begin with, the stronger Arctic amplification becomes due to the lower precipitation efficiency of liquid droplets compared to ice crystals. Our results emphasize the importance of realistic representations of microphysical processes in mixed‐phase clouds, particularly in the Arctic.
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