AbstractIt has been proven that assimilating winds from the Aeolus global Doppler Wind Lidar (DWL) would enhance the predictive skill of weather forecast models. In this study, we use a series of observing system experiments to examine how currently assimilated “operational” wind products and Aeolus winds impact environment and climate change Canada's global forecast system over the data‐sparse Arctic region. Aeolus winds improve the tropospheric wind and temperature forecasts by about 0.7%–0.9% of error reduction (a 15%–20% effect compared to the impact of operational wind products) while having little impact on specific humidity. In particular, Aeolus winds have an impact on forecasts of strong wind days on the wind and temperature fields that is double the impact for weaker wind days. On the other hand, the operational wind products do not show as large a discrepancy in impact between forecasts of disturbed and normal days. These findings suggest significant potential for global DWL observations to enhance severe weather prediction in polar regions.