<jats:p>Rapidly shrinking Arctic sea ice has had substantial impacts on the Earth system. Therefore, reliably estimating the Arctic sea-ice thickness (SIT) using a combination of available observations and numerical modeling is urgently needed. Here, for the first time, we assimilate the latest CryoSat-2 summer SIT data into a coupled ice-ocean model. In particular, an incremental analysis update scheme is implemented to overcome the discontinuity resulting from the combined assimilation of biweekly SIT and daily sea-ice concentration (SIC) data. Along with improved estimates of sea-ice volume, our SIT estimates corrected the overestimation of SIT produced by the reanalysis that assimilates only SIC in summer in areas where the sea ice is roughest and experiences strong deformation, e.g., around the Fram Strait and Greenland. This study suggests that the newly developed CryoSat-2 SIT product, when assimilated properly using our approach, has great potential for Arctic sea-ice simulation and prediction.</jats:p>