The atmospheric freezing level (ZFL) determines the rain‐snow transition zone at the surface, how much rainfall is available for runoff, and the flood risk during a precipitation event. An accurate ZFL forecast is thus critical for reservoir operation, especially in mountain watersheds with narrow elevation bands like the Feather and North Fork Yuba in California, where a 500‐m elevation gain can amount to >50% of the watershed area. Using a ±350‐m ZFL forecast error, we find inflow volume uncertainties of <10% to >50% of the flood pool storages at Lake Oroville and New Bullards Bar reservoirs, depending on the ZFL, antecedent moisture condition, and the precipitation event magnitude. The uncertainties can increase by up to >3% per inch (25.4 mm) of precipitation, depending on the ZFL and antecedent moisture condition. This result substantiates the significant impact of ZFL forecast error and the critical need of ZFL forecast accuracy to support reservoir flood control operations in the two watersheds.