Abstract Lasting updrafts are necessary to produce severe hail; conventional wisdom suggests that extremely large hailstones require updrafts of commensurate strength. Because updraft strength is largely controlled by convective available potential energy (CAPE), one would expect environments with larger CAPE to be conducive to storms producing larger hail. By systematically varying CAPE in a horizontally homogeneous initial environment, we simulate hail production in high-shear, high-instability supercell storms using Cloud Model 1 and a detailed 3D hail growth trajectory model. Our results suggest that CAPE modulates the updraft’s strength, width, and horizontal wind field, as well as the liquid water content along hailstones’ trajectories, all of which have a significant impact on final hail sizes. In particular, hail sizes are maximized for intermediate CAPE values in the range we examined. Results show a non-monotonic relationship between the hailstones’ residence time and CAPE due to changes to the updraft wind field. The ratio of updraft area to southerly wind speed within the updraft serves as a proxy for residence time. Storms in environments with large CAPE may produce smaller hail because the in-updraft horizontal wind speeds become too great, and hailstones are prematurely ejected out of the optimal growth region. Liquid water content (LWC) along favorable hailstone pathways also exhibits peak values for intermediate CAPE values, owing to the horizontal displacement across the midlevel updraft of moist inflow air from differing source levels. In other words, larger CAPE does not equal larger hail, and storm-structural nuances must be examined.