Geographically distributed agile development may experience a high failure rate due to communication issues, which has a negative influence on project performance. One suggested solution in the literature is to enhance both communication and project performance by implementing agile enterprise architecture. However, the empirical evidence that supports this claim is still scarce. To address this gap, this study empirically explores the role of agile enterprise architecture as an artifact in distributed agile development. The findings of an in‐depth qualitative case study from a dispersed agile development organization that involves teams distributed over three locations are used in this work. Over 2 months, data was gathered by interviewing 12 key members of the team and watching three Sprint sessions of agile software development. Text analysis qualitative approach was used to analyze the data. The findings imply that agile enterprise architecture has a positive effect on distributed agile software development communication, quality, and functionality. Agile enterprise architecture may also support on‐time completion, but a trade‐off with on‐budget may be necessary. These findings provide valuable insights, frameworks, and best practices that support organizations in achieving greater agility, collaboration, and success in their distributed software development initiatives. As this is one of the first studies to look at the influence of agile enterprise architecture on distributed agile software development communication and performance, further research is needed to confirm and expand on the conclusions of this study.