While satellites provide the means to monitor the temporal and spatial vari
ability of surface albedo, their use has been limited to clear-sky areas be
cause clouds obscure the surface at wavelengths in the solar spectrum. Howe
ver, the effect of clouds on the surface albedo, especially that of snow an
d ice, is significant and should be considered in satellite retrievals. In
this paper theoretical and observational evidence is given that shows the s
now/ice albedo to be on the average 4-6% (absolute) higher under cloud cove
r than for clear skies, with a range of slightly less than 0 to approximate
ly 15%. A method for retrieving the clear-sky broadband albedo of snow/ice
from the advanced very high resolution radiometer is presented, and an adju
stment for cloud optical depth is proposed. The cloudy-sky adjustment is in
dependent of sensor type and could also be used with nonsatellite data sets
. An application of the algorithm to data from the Surface Heat Budget of t
he Arctic Ocean experiment demonstrates that clear- and cloudy-sky snow sur
face albedo can be obtained from space with an uncertainty of approximately
7% absolute. While it may be sufficient to adjust a monthly clear-sky surf
ace albedo climatology for clouds by incorporating the mean cloud effect of
approximately 5%, adjustments for cloud optical depth should be performed
with instantaneous retrievals.