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<p>Ozone (O<span class="inline-formula">₃</span>) dry deposition is a major O<span class="inline-formula">₃</span> sink. As a follow-up study of Huang et al. (2021), we quantify the impact of satellite soil moisture (SM) on model representations of this process when different dry-deposition parameterizations are implemented, based on which the implications for interpreting O<span class="inline-formula">₃</span> air pollution levels and assessing the O<span class="inline-formula">₃</span> impacts on human and ecosystem health are provided. The SM data from NASA's Soil Moisture Active Passive mission are assimilated into the Noah-Multiparameterization (Noah-MP) land surface model within the NASA Land Information System framework, semicoupled with Weather Research and Forecasting model with online Chemistry (WRF-Chem) regional-scale simulations covering the southeastern US. Major changes in the modeling system used include enabling the dynamic vegetation option, adding the irrigation process, and updating the scheme for the surface exchange coefficient. Two dry-deposition schemes are implemented, i.e., the Wesely scheme and a “dynamic” scheme, in the latter of which dry-deposition parameterization is coupled with photosynthesis and vegetation dynamics. It is demonstrated that, when the dynamic scheme is applied, the simulated O<span class="inline-formula">₃</span> dry-deposition velocities <span class="inline-formula"><i>v</i>_d</span> and their stomatal and cuticular portions, as well as the total O<span class="inline-formula">₃</span> fluxes <span class="inline-formula"><i>F</i>_t</span>, are larger overall; <span class="inline-formula"><i>v</i>_d</span> and <span class="inline-formula"><i>F</i>_t</span> are 2–3 times more sensitive to the SM changes due to the data assimilation (DA). Further, through case studies at two forested sites with different soil types and hydrological regimes, we highlight that, applying the Community Land Model type of SM factor controlling stomatal resistance (i.e., <span class="inline-formula"><i>β</i></span> factor) scheme in replacement of the Noah-type <span class="inline-formula"><i>β</i></span> factor scheme reduced the <span class="inline-formula"><i>v</i>_d</span> sensitivity to SM changes by <span class="inline-formula">∼75</span> % at one site, while it doubled this sensitivity at the other site. Referring to multiple evaluation datasets, which may be associated with variable extents of uncertainty, the model performance of vegetation, surface fluxes, weather, and surface O<span class="inline-formula">₃</span> concentrations shows mixed responses to the DA, some of which display land cover dependency. Finally, using model-derived concentration- and flux-based policy-relevant O<span class="inline-formula">₃</span> metrics as well as their matching exposure–response functions, the relative biomass/crop yield losses for several types of vegetation/crops are estimated to be within a wide range of 1 %–17 %. Their sensitivities to the model's dry-deposition scheme and the implementation of SM DA are discussed.</p>