The role of dust intrusions in the formation of lake heatwaves has not yet been discussed in previous publications. We investigated a lake heatwave (LHW) and an atmospheric heatwave (AHW) in the freshwater Lake Kinneret in the Eastern Mediterranean: these were caused by an extreme dust intrusion that lasted for a 10-day period (7–17 September 2015). The AHW and LHW were defined as periods of abnormally high air temperature (Tair) and lake surface water temperature (SWT) compared to their 90th percentile thresholds in September. In the daytime, the maximal intensities of AHW and LHW reached 3 °C and 2 °C, respectively. This was despite the pronounced drop in solar radiation due to the dust radiative effect. The satellite SWT retrievals were incapable of representing the abnormally high SWT in the presence of the extreme dust intrusion. Both METEOSAT and MODIS-Terra showed a sharp decrease in the SWT compared to the actual SWT: up to 10 °C in the daytime and up to 15 °C in the nighttime. Such a significant underestimation of the actual SWT in the presence of a dust intrusion should be considered when using satellite data to analyze heatwaves. In the absence of moisture advection, the AHW and LHW were accompanied by an increase of up to 30% in absolute humidity (ρv) over the lake. Being a powerful greenhouse gas, water vapor (characterized by an increased ρv) absorbed most of both the upwelling and downwelling longwave thermal radiation, heating the near-ground atmospheric layer (which is in direct contact with the lake water surface), in the daytime and nighttime. In the nighttime, the maximal intensity of the AHW and LHW reached 4 °C and 3 °C, respectively. Because of the observed steadily increasing dust pollution over the Eastern Mediterranean during the past several decades, we anticipate that dust-related lake heatwaves will intensify adverse effects on aquatic ecosystems such as reducing fishery resources and increasing harmful cyanobacteria blooms.