Among the physical processes controlling aerosol vertical profiles, in‐cloud wet removal is of utmost importance while its representation in global climate models (GCMs) is crude. In this study, we implement into the Community Atmosphere Model version 6 (CAM6) a physically‐based aerosol wet removal parameterization scheme that explicitly treats aerosol activation, removal and resuspension. Evaluation against in‐situ observations shows that the default scheme substantially overestimates the upper tropospheric black carbon (BC) and sea salt mass. Our physically‐based scheme reduces BC and sea salt mass by a factor of 10 and 1000, respectively, in better agreement with observations. Also, the new scheme slightly increases number of aerosol particles between 12 nm and 4.8 µm in diameter, thereby mitigating the aerosol number underestimation in the default scheme. Our new scheme reduces the overestimation of coarse‐mode aerosol (0.5‐4.8 µm) number. Overall, the aerosol mass decrease and number reduce the cloud condensation nuclei (CCN) concentration at low supersaturation (i.e., 0.02 % and 0.1 %), and increase CCN at high supersaturations (i.e., 0.5 % and 1 %). Consequently, the global annual mean cloud liquid water path increases by 1.89 g/m2 and the ice water path increases by 0.51 g/m2. The global annual mean shortwave, longwave, and net cloud radiative forcing change by ‐1.06, 0.57, and ‐0.48 W m‐2, respectively. Further improvement is needed to reflect the real physics that the removal efficiencies for aerosol mass and number are disproportionate and to advect cloud‐borne (activated) aerosols for a complete aerosol lifecycle.