Abstract Forecasts of sea surface temperature anomalies (SSTAs) provide essential information to stakeholders of marine resources in coastal ecosystems, such as the California Current Large Marine Ecosystem (CCLME), at management-relevant monthly-to-annual time scales. Diagnosing dynamical sources of predictability and the mechanisms differentiating skill among forecasts is required for verification and improvement in operational forecasting systems. Using retrospective forecasts (1982–2020) from a four-member subset of the North American Multi-Model Ensemble (NMME), we evaluate the conditional skill of SSTA forecasts in the CCLME at monthly resolution for lead times up to 10.5 months. Forecasts from ensemble members with relatively small SSTA errors at shorter lead times retain higher skill at longer lead times, with the most substantial and long-lasting increases for forecasts initialized in the fall and early spring. The “best” low-error SSTA forecasts are characterized by increased skill in the prediction of North Pacific atmospheric circulation [sea level pressure (SLP) and 200-hPa geopotential height] the month prior to the evaluation of SSTA errors in the CCLME and exhibit more realistic progressions of anomalous SLP. The Pacific meridional mode (PMM) emerges as a diagnostic of skillful North Pacific atmosphere–ocean coupling, as forecasts that correctly simulate the PMM and its associated SLP variability increase the SSTA prediction skill in the CCLME in the fall through spring. Predictable coupled ocean–atmosphere modes provide a target for enhancing predictability with early detection of the onset of a deterministic progression emerging from stochastic atmospheric variability. Significance Statement Global forecast systems provide near-term climate predictions that inform the management of marine resources, such as those of the California Current Large Marine Ecosystem. In this study, we probe the processes which lead forecasts to succeed or fail at predicting sea surface temperatures in the California Current at seasonal time scales among retrospective forecasts from the North American Multimodel Ensemble. We demonstrate that forecasts which best simulate sea surface temperatures at the earliest lead times sustain advantages in forecast skill and find that correctly simulating extratropical atmospheric circulation increases the predictive skill of sea surface temperatures in the northeast Pacific in the following lead times. Our results offer North Pacific atmospheric circulation as a target for forecast model improvement that would additionally enhance ocean forecasts.