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We use digital elevation models (DEMs) and ICESat‐2 data to study the filling and outflow from a large subglacial lake under Manson Icefield in the Canadian Arctic. When full, the lake is ∼17 × 3 km with an area of 52 km2. Early in 2021 the ice surface over the center of the lake sank by >140 m implying a subglacial outburst flood of ∼4 km3. Rapid outflow occurred over ∼30 days at an average rate of ∼1,500 m3s−1 resulting in the formation of a single ∼15 km subglacial outflow path detectable from post‐outflow surface depression. The shape of the surface depression, 600–800 m wide by 2–4 m deep, reflects the shape of the subglacial channel prior to closure. Downstream ice movement appears unaffected by the outflow. After outflow ends the surface depression persisted over weeks, apparently dependent on the difference between water and overburden pressures. Plain Language Summary: Using satellite observations, we discovered a large lake under the Manson Icefield in the Canadian Arctic. Early in 2021 the ice surface over the center of the lake sank by around 140 m implying a total subglacial water outflow of around 4 km3, the largest reported outside of Iceland and Antarctica. Most of this water drained from the subglacial lake within 30 days melting some of the ice along the outflow path. For the first time we map the position and size of the subglacial output channel between the downstream end of the lake and the ocean using post‐outflow surface depression as the ice sank downward to close the channel after the water outflow. These results help in understanding the ways in which the presence, movement, and volume of water beneath glaciers influence ice movement and climate related glacial ice loss. Key Points: Using satellite height change data we document the discovery of a 52 km2 subglacial lake under the Manson Icefield, Nunavut, CanadaThe lake filled for around 14 years until early 2021 when the level in the center of the lake dropped by 130 m over 30 daysThe outflow volume was around 4 cubic kilometers and created a wide and shallow subglacial channel that could be tracked for over 15 km [ABSTRACT FROM AUTHOR]