AbstractThe interactions of clouds with radiation influence climate. Many of these impacts appear to be related to the radiative heating and cooling from high‐level clouds, but few studies have explicitly tested this. Here, we use simulations with the ICON‐ESM model to understand how high‐level clouds, through their radiative heating and cooling, influence the large‐scale atmospheric circulation and precipitation in the present‐day climate. We introduce a new method to diagnose the radiative heating of high‐level clouds: instead of defining high‐level clouds as all clouds at temperatures colder than −35°C, we define them as all clouds with a cloud top at temperatures colder than −35°C. The inclusion of the lower cloud parts at temperatures warmer than −35°C circumvents the creation of artificial cloud boundaries and strong artificial radiative heating at the temperature threshold. To isolate the impact of high‐level clouds, we analyze simulations with active cloud‐radiative heating, with the radiative heating from high‐level clouds set to zero, and with the radiative heating from all clouds set to zero. We show that the radiative interactions of high‐level clouds warm the troposphere and strengthen the eddy‐driven jet streams, but have no impact on the Hadley circulation strength and the latitude of the Intertropical Convergence Zone. Consistent with their positive radiative heating and energetic arguments, high‐level clouds reduce precipitation throughout the tropics and lower midlatitudes. Overall, our results confirm that the radiative interactions of high‐level clouds have important impacts on climate and highlight the need for better representing their radiative interactions in models.