Exploiting the potential of space-borne oceanic measurements to characterize the sub-surface structure of the ocean becomes critical in areas where deployment of in situ sensors might be difficult or expensive. Sea Surface Temperature (SST) observations potentially provide enormous amounts of information about the upper ocean variability. However, the assimilation of daytime SST retrievals, e.g., from infrared sensors into ocean prediction systems, requires a specific treatment of the diurnal cycle of skin SST, which is generally under-estimated in current ocean models due to poor vertical resolution at the air–sea interface and lack of proper parameterizations. To this end, a simple off-line bias correction scheme is proposed, where the bias predictors include, among others, the warm layer and cool skin warming/cooling deduced from a prognostic model. Furthermore, a localization procedure that limits the vertical penetration of the SST information in a hybrid variational-ensemble data assimilation system is formulated. These two novelties are implemented and assessed within a regional ocean prediction system in the Ligurian Sea for the assimilation of daytime SST data retrieved with hourly frequency from the Spinning Enhanced Visible and Infrared Imager (SEVIRI) onboard the geostationary satellite Meteosat-10. Experiments are validated against independent measurements collected by gliders, moorings, and drifters during the Long-term Glider Missions for Environmental Characterization (LOGCMEC17) sea trial. Results suggest that the simple bias correction scheme is effective in improving both the sea surface and mixed layer accuracy, correctly thinning the mixed layer compared to the control experiment, outperforming experiments with night-only data assimilation, and improving the forecast skill scores. Localization further improves the prediction of the mixed layer depth. It is therefore recommended that sophisticated bias correction and localization procedures are adopted for fruitfully assimilating daytime SST data in operational oceanographic analysis systems.