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Understanding influence of vegetation on past temperature changes in the Arctic region would help isolate uncertainty and build understanding of its broader climate system, with implications for paleoclimate reconstructions and future climate change. Using an Earth system model EC‐Earth, we conduct a series of simulations to investigate the impact of vegetation‐climate feedback on the Arctic climate during the mid‐Holocene. Results show Arctic greening induced by the warming resulting from stronger orbital forcing, further amplifies the Arctic warming. The increased vegetation contributes 0.33°C of Arctic warming and 0.35 × 106 km2 of Arctic sea ice loss. Increased Arctic vegetation leads to reduced land surface albedo and increased evapotranspiration, both of which cause local warming in spring and summer. The resultant sea ice loss causes warming in the following seasons, with atmospheric circulation anomalies further amplifying the warming. Our results highlight the significant contribution of vegetation‐climate feedback to Arctic climate under natural conditions. Plain Language Summary: Vegetation‐climate feedback is an essential process between the terrestrial biosphere and the atmosphere. Greening of the Arctic can be invoked by increased solar radiation, for example, during the mid‐Holocene (6,000 years ago), or increased greenhouse gas, for example, ongoing global warming. Here we perform simulations of vegetation and climate interactions during the mid‐Holocene and demonstrate the impact of vegetation‐climate feedback on the Arctic climate. We show that compared to the pre‐industrial period (1850 CE), the Arctic region experiences an expansion of vegetation under a warm climate due to increased solar radiation during the mid‐Holocene. The greening leads to reduced land albedo and enhanced evapotranspiration. These changes and resultant sea ice loss, in combination with associated atmospheric circulation changes, further amplify the Arctic warming. These changes alone are responsible for 0.33°C increase in surface air temperature and 0.35 × 106 km2 increase in sea ice loss. Given the facts of observed ongoing Arctic greening in recent decades, our modeling results suggest that the effect of the vegetation‐climate feedback will amplify the future Arctic warming and sea ice loss even more. Key Points: The Earth system model EC‐Earth reproduced the expansion of vegetation in northern high latitudes during the mid‐Holocene compared to the PIThe mid‐Holocene Arctic greening contributes 0.33°C increase in annual Arctic warming and 0.35 × 106 km2 of sea ice lossThe increased evapotranspiration and decreased surface albedo due to the Arctic greening amplify the Arctic warming in the growing season [ABSTRACT FROM AUTHOR]