AbstractIce‐contact proglacial lakes are generally absent from numerical model simulations of glacier evolution, and their effects on ice dynamics and on rates of deglaciation remain poorly quantified. Using the BISICLES ice flow model, we analyzed the effects of an ice‐contact lake on the Pukaki Glacier, New Zealand, during recession from the Last Glacial Maximum. The ice‐contact lake produced a maximum effect on grounding line recession >4 times further and on ice velocities up to 8 times faster, compared to simulations of a land‐terminating glacier forced by the same climate. The lake contributed up to 82% of cumulative grounding line recession and 87% of ice velocity during the first 300 years of the simulations, but those values decreased to just 6% and 37%, respectively, after 5,000 years. Numerical models that ignore lake interactions will, therefore, misrepresent the rate of recession especially during the transition of a land‐terminating to a lake‐terminating environment.