For understanding Arctic climate change, it is critical to quantify and address uncertainties in climate data records on clouds and radiative fluxes derived from long-term passive satellite observations. A unique set of observations collected during the PS106 expedition of the research vessel Polarstern (28 May to 16 July 2017) by the OCEANET facility, is exploited here for this purpose and compared with the CERES SYN1deg ed. 4.1 satellite remote-sensing products. Mean cloud fraction (CF) of 86.7 % for CERES SYN1deg and 76.1 % for OCEANET were found for the entire cruise. The difference of CF between both data sets is due to different spatial resolution and momentary data gaps, which are a result of technical limitations of the set of shipborne instruments. A comparison of radiative fluxes during clear-sky (CS) conditions enables radiative closure (RC) for CERES SYN1deg products by means of independent radiative transfer simulations. Several challenges were encountered to accurately represent clouds in radiative transfer under cloudy conditions, especially for ice-containing clouds and low-level stratus (LLS) clouds. During LLS conditions, the OCEANET retrievals were particularly compromised by the altitude detection limit of 155 m of the cloud radar. Radiative fluxes from CERES SYN1deg show a good agreement with ship observations, having a bias (standard deviation) of −6.0 (14.6) and 23.1 (59.3) W m−2 for the downward longwave (LWD) and shortwave (SWD) fluxes, respectively. Based on CERES SYN1deg products, mean values of the radiation budget and the cloud radiative effect (CRE) were determined for the PS106 cruise track and the central Arctic region (70–90∘ N). For the period of study, the results indicate a strong influence of the SW flux in the radiation budget, which is reduced by clouds leading to a net surface CRE of −8.8 and −9.3 W m−2 along the PS106 cruise and for the entire Arctic, respectively. The similarity of local and regional CRE supports the consideration that the PS106 cloud observations can be representative of Arctic cloudiness during early summer.