Exploiting the fact that the spectral characteristics of light backscattered from sediment-laden ice differ substantially from those of clean ice and that sediment tends to accumulate at the ice surface during the first melt season, remote-sensing techniques provide a valuable tool for mapping the extent of particle-laden ice in the Arctic basin and assessing its particulate loading. This study considers two fundamental problems that still need to be addressed in order to make full use of satellite observations for this type of assessment: (i) the effects of the atmosphere on surface reflectances derived from radiances measured by the satellite sensor need to be quantified and ultimately corrected for, and (ii) the spectral reflectance of the ice surface as a function of particle loading and sub-pixel distribution needs to be determined in order to derive quantitative estimates from the at-sensor satellite signal. Here, spectral albedos have been computed for different ice surfaces of variable sediment load with a radiative transfer model for sea ice coupled with an optical model for particulates included in sea ice. In a second step, the role of the atmosphere in modulating the surface reflectance signal is assessed with the aid of an atmospheric radiative transfer model applied to a “standard” Arctic atmosphere and surface boundary conditions as prescribed by the sea ice radiative transfer model. A series of sensitivity studies helps assess differences between top-of-the-atmosphere and true surface reflectance and has been utilized to derive a look-up table for atmospheric correction of Advanced Very High Resolution Radiometer (AVHRR) data over sediment-laden sea ice surfaces. In particular, the effects of solar elevation, viewing geometry, and atmospheric properties are considered. The atmospheric corrections are necessary for certain geometries and surface types. Large discrepancies between raw and corrected data are particularly evident in the derived coverage of clean ice and ice with small sediment loading.