The European Space Agency Climate Change Initiative Land Cover data (ESA CCI-LC, from 1992 to 2015) is introduced to the National Center for Atmospheric Research Community Earth System Model version 1.2.1 (NCAR CESM1.2.1). In comparison with the original land surface data in the Community Land Model version 4 (ORG), the new data features notable land use and land cover change (LULCC) with increased forests over northeastern Asia and Alaska by decreasing shrublands and grasslands. Overestimated bare land cover over the Tibetan Plateau (TP) and the Rocky Mountains in the ORG are corrected with the replacements by grasslands and shrublands respectively in the new data. The model simulation results show that with the introduction of the ESA CCI-LC, the simulated surface albedo, surface net radiation flux, sensible and latent heat fluxes are relatively improved over the regions where significant LULCC exists, such as northeastern Asia, Alaska, the TP, and Australia. Surface air temperature, precipitation, and atmospheric circulation are improved in boreal winter but degraded in summer. The winter warming over northeastern Asia results from increased longwave downwelling flux and adiabatic heating while the notable winter cooling over Alaska is attributed to strong cold advection followed by reduced longwave downwelling flux. LULCC alters precipitation by influencing water vapor content. In winter, LULCC affects atmospheric circulation via modulating baroclinicity while in summer, it influences land-sea thermal contrast, thus affecting the intensity of East Asian summer monsoon. LULCC also alters the simulated dust burden.