Recently, there has been growing interest in water‐assisted injection molding (WAIM) not only for its advantages over gas‐assisted molding (GAIM) and conventional injection molding (CIM), but also for its great potential advantages in industrial applications. To understand the formation mechanism of water penetration induced fiber orientation in overflow water‐assisted injection molding (OWAIM) parts of short glass fiber‐reinforced polypropylene (SGF/PP), in this work, the external fields and water penetration process within the mold cavity were investigated by experiments and numerical simulations. The results showed that the difference of fiber orientation distribution in thickness direction between WAIM moldings and CIM moldings was mainly ascribed to the great external fields generated by water penetration. Besides, fiber orientation depended on the position both across the part thickness and along the flow direction. Especially in the radial direction, fiber orientation varied considerably. The results also showed that the melt temperature is the principal parameter affecting the fiber orientation along the flow direction, and a higher melt temperature significantly facilitated more fibers to be oriented along the flow direction, which is quite different from the results as previously reported in short‐shot water‐assisted injection molding (SSWAIM). A higher water pressure, shorter water injection delay time, and higher melt temperature significantly induced more fibers to be orderly oriented in OWAIM moldings, which may improve their mechanical performances and broaden their application scope.