AbstractThe Arctic Oscillation (AO) is the leading mode of extratropical northern hemisphere atmospheric variability, affecting surface pressure, winds, temperature, and precipitation. Here we use an altimeter sea level record spanning 2003–2014, covering the ice‐covered and ice‐free ocean, to examine the influence of the AO on Arctic sea level and surface geostrophic circulation. AO‐driven alongshore wind anomalies drive cross‐shelf Ekman transport and opposing barotropic sea level anomalies between the shelf seas and deep basins of the Arctic Ocean, with maximum sea level anomaly differences across the shelf‐break of ~3 cm per unit AO index. This pattern of sea level variability generates topographically steered (generally along‐shelf) current anomalies of around 0.5 cm/s per unit AO index. AO‐driven wind variability modulates surface currents associated with Atlantic and Pacific water inflow, with opposing inflow anomalies between the Barents Sea Opening and Bering Strait.