Simulation of atmosphere-ocean-ice interactions in coupled Earth modelling systems with kilometer-scale resolution is a newchallenge in operational numericalweather prediction. This study presents an assessment of sensitivity experiments performed with different sea-ice products in a convective-scale weather forecasting system for the European Arctic. On kilometer-scale resolution sea-ice products are challenged by the large footprint of passive microwave satellite observations and issues with spurious sea-ice detection of the higher resolution retrievals based on Synthetic-Aperture Radar instruments. We perform sensitivity experiments with sea-ice concentration fields of (1) the global ECMWF-IFS forecast system, (2) a newly developed multi-sensor product processed through a coupled sea ice-ocean forecasting system, and (3) the AMSR2 product based on passive microwave observations. There are significant differences between the products on O(100km)-scales in the Northern Barents Sea and along the Marginal Ice Zone north of the Svalbard archipelago and towards the Fram Strait. These differences have a direct impact on the modelled surface skin temperature over ocean and sea ice, the turbulent heat flux, and 2 meter air temperature (T2M). An assessment of Arctic weather stations shows a significant improvement of forecasted T2M in the north and east of Svalbard when using the new multi-sensor product, however, south of Svalbard this product has a negative impact. The different sea-ice products are resulting in changes of the surface turbulent heat flux of up to 400W/m2 which in turn results in T2M variations of up to 5°C. Over a two-day forecast lead time this can lead to uncertainties in weather forecasts of about 1°C even hundreds of kilometers away from the sea-ice.