AbstractAlgae growing in sea ice represent a source of carbon for sympagic and pelagic ecosystems and contribute to the biological carbon pump. The biophysical habitat of sea ice on large scales and the physical drivers of algae phenology are key to understanding Arctic ecosystem dynamics and for predicting its response to ongoing Arctic climate change. In addition, quantifying potential feedback mechanisms between algae and physical processes is particularly important during a time of great change. These mechanisms include a shading effect due to the presence of algae and increased basal ice melt. The present study shows pan‐Arctic results obtained from a new Sea Ice Model for Bottom Algae (SIMBA) coupled with a 3‐D sea‐ice–ocean model. The model is evaluated with data collected during a ship‐based campaign to the Eastern Central Arctic in summer 2012. The algal bloom is triggered by light and shows a latitudinal dependency. Snow and ice also play a key role in ice algal growth. Simulations show that after the spring bloom, algae are nutrient limited before the end of summer and finally they leave the ice habitat during ice melt. The spatial distribution of ice algae at the end of summer agrees with available observations, and it emphasizes the importance of thicker sea‐ice regions for hosting biomass. Particular attention is given to the distinction between level ice and ridged ice. Ridge‐associated algae are strongly light limited, but they can thrive toward the end of summer, and represent an additional carbon source during the transition into polar night.