Using the AIRS retrieved temperature and humidity profiles, the Saharan Air Layer (SAL) influence on the formation of Hurricane Isabel (2003) is simulated numerically with the MM5 model. The warmth and dryness of the SAL (the thermodynamic effect) is assimilated by use of the nudging technique, which enables the model thermodynamic state to be relaxed to the profiles of the AIRS retrieved data for the regions without cloud contamination. By incorporating the AIRS data, MM5 better simulates the large-scale flow patterns and the timing and location of the formation of Hurricane Isabel and its subsequent track. By comparing with an experiment without nudging of the AIRS data, it is shown that the SAL may have delayed the formation of Hurricane Isabel and inhibited the development of another tropical disturbance to the east. This case study confirms the argument by Dunion and Velden (2004) that the SAL can suppress Atlantic tropical cyclone activity by increasing the vertical wind shear, reducing the mean relative humidity, and stabilizing the environment at lower levels.