SummaryMornings are salient times for disrupted affect that may be impacted by prior sleep. The current study extends work linking sleep disruptions with negative affect by examining how nightly changes in sleep duration, timing, and quality relative to a person's average impact morning affect. We further tested whether depression severity moderated the relationship between nightly variations in sleep and morning affect. This is a secondary analysis of participants ages 18–65 years with varying levels of depression (N = 91) who wore an Actiwatch for 3–17 days (n = 73) while reporting morning affect using a visual analogue scale. Multilevel models tested the previous night's sleep duration, timing, or quality as a predictor of morning affect. Sleep measures were group‐mean centred to account for nightly variation in participants' sleep. A cross‐level interaction between depression severity and nightly sleep was entered. Sleeping longer (b = 0.1; p < 0.001) and later (b = 1.8; p = 0.01) than usual were both associated with better morning mood. There was a significant interaction between nightly actigraphic sleep duration and depression severity on morning affect (b = 0.003; p = 0.003). Participants with higher depression severity reported worse affect upon waking after sleeping less than their usual. In comparison, sleeping less than usual did not affect morning affect ratings for participants with lower depression. A similar interaction was found for sleep quality (b = 0.02; p < 0.001). There was no interaction for midsleep timing. Sleeping less than usual impacted morning affect in individuals with greater depression, potentially suggesting a pathway by which sleep disturbances perpetuate depression.