Abstract This paper describes the new Regional Arctic Ocean/sea ice Reanalysis (RARE) with a domain that spans a subpolar/polar cap poleward of 45°N. Sequential data assimilation constrains temperature and salinity using World Ocean Database profiles as well as in situ and satellite SST, and PIOMAS sea ice thickness estimates. The 41-yr (1980–2020) RARE1.15.2 reanalysis with resolution varying between 2 and 5 km horizontally and 1–10 m vertically in the upper 100 m is examined. To explore the impact of resolution RARE1.15.2 is compared to a coarser-resolution SODA3.15.2, which uses the same modeling and data assimilation system. Improving resolution in the reanalysis system improves agreement with observations. It produces stronger more compact currents, enhances eddy kinetic energy, and strengthens along-isopycnal heat and salt transports, but reduces vertical exchanges and thus strengthens upper ocean haline stratification. RARE1.15.2 and SODA3.15.2 are also compared to the Hadley Center EN4.2.2 statistical objective analysis. In regions of reasonable data coverage such as the Nordic seas the three products produce similar time-mean distributions of temperature and salinity. But in regions of poor coverage and in regions where the coverage changes in time EN4.2.2 suffers more from those inhomogeneities. Finally, the impact on the Arctic of interannual temperature fluctuations in the subpolar gyres on the Arctic Ocean is compared. The influence of the subpolar North Pacific is limited to a region surrounding Bering Strait. The influence of the subpolar North Atlantic, in contrast, spreads throughout the Nordic seas and Barents Sea in all three products within two years. Significance Statement The Arctic Ocean/sea ice system plays crucial roles in climate variability and change by controlling the northern end of the oceanic overturning circulation, the equator to pole air pressure gradient, and Earth’s energy balance. Yet the historical ocean observation set is sparse and inhomogeneous, while ocean dynamics has challengingly fine horizontal and vertical scales. This paper introduces a new Regional Arctic Ocean/sea ice Reanalysis (RARE) whose goal is to use the combined constraints of mesoscale ocean dynamics, historical observations, surface meteorology, and continental runoff in a data assimilation framework to reconstruct historical variability. RARE is used to produce a 41-yr ocean/sea ice reanalysis 1980–2020 whose results are described here.