Extensive observations indicate a distinct difference between maritime and continental effective drop size re, for warm clouds. The latest version of the NCAR Community Climate Model (CCM2) is used to explore the sensitivity of differentiating between continental and maritime re on the simulated climate. The results of this study indicate that the smaller drop size over continents leads to a reduction of surface-absorbed solar radiation from 20 to 60 W m-2. This reduction in surface solar flux leads to a cooling of the continents by up to -3.5 K. The reduction in surface solar flux and temperature also leads to a reduction in latent heat flux and precipitation over land. In the January simulation, there is a significant shift in tropical precipitation associated with the Australian monsoon. This shift leads to a response in the extra tropical geopotential height field over the western United States. All of these changes reduce biases in the current version of CCM2. ¿ American Geophysical Union 1994