AbstractSea ice concentration (SIC) derived from 89 GHz data has up to four times finer spatial resolution compared to that from the widely used 19 and 37 GHz data. But it has lower accuracy due to the enhanced weather influences from water vapor, cloud liquid water (CLW), wind, and surface temperature. Here we improve a high‐resolution SIC algorithm, called the ASI algorithm, based on the difference between vertical and horizontal polarization 89 GHz data, by correcting the observed data for these weather influences through a radiative transfer model and geophysical data retrieved by an optimal estimation method. The improved algorithm denoted ASI3, is developed for the Arctic based on the weather‐corrected brightness temperatures and newly identified open water (80 K) and sea ice (14 K) tie‐points. The most important component of this correction is the inclusion of CLW, the largest weather influence contributor. ASI3 results are evaluated over pure surface sites of 0% and 100% SICs under various weather conditions, showing a much lower average standard deviation (1.1%) than ASI (16.2%). ASI3 reduces weather patterns over pack ice resulting in more homogeneous retrievals but biased toward lower values. Comparison to Landsat imagery under clear‐sky conditions shows that ASI3 results in better agreement with the Landsat SIC than ASI. The number of cases where real sea ice is falsely identified as open water is reduced by ASI3 due to its relaxed open‐water mask and wider water/ice dynamic range.