The impact of horizontal propagation of mountain waves on the orographic gravity wave drag (OGWD) in the stratosphere and lower mesosphere of the Northern Hemisphere is evaluated for the first time. Using a fine‐resolution (1 arc min) terrain and 2.5°×2.5° European Centre for Medium‐Range Weather Forecasts ERA‐Interim reanalysis data during 2011–2016, two sets of OGWD are calculated offline according to a traditional parameterization scheme (without horizontal propagation) and a newly proposed scheme (with horizontal propagation). In both cases, the zonal mean OGWDs show similar spatial patterns and undergo a notable seasonal variation. In winter, the OGWD is mainly distributed in the upper stratosphere and lower mesosphere of middle to high latitudes, whereas the summertime OGWD is confined in the lower stratosphere. Comparison between the two sets of OGWD reveal that the horizontal propagation of mountain waves tends to decrease (increase) the OGWD in the lower stratosphere (middle to upper stratosphere and lower mesosphere). Consequently, including the horizontal propagation of mountain waves in the parameterization of OGWD can reduce the excessive OGWD in the lower stratosphere and strengthen the insufficient gravity wave forcing in the mesosphere, which are the known problems of traditional OGWD schemes. The impact of horizontal propagation is more prominent in winter than in summer, with the OGWD in western Tibetan Plateau, Rocky Mountains, and Greenland notably affected.