This study investigates the causes of shifts in the subsiding edge of the boreal winter Hadley cell (HC) in response to a comprehensive treatment of ocean surface albedo (OSA) in the fully coupled CESM2. The focus is on an in‐depth understanding of the atmospheric dynamical processes that influence the HC subsiding edge. Two sets of experiments were performed: one utilizing the default OSA, and the other employing the comprehensive OSA that accounts for realistic physical mechanisms. The results show that implementing the comprehensive OSA simulates an El Niño‐like warming pattern in reference to the default experiment, which leads to an HC contraction. Examination of zonal mean momentum dynamics in the upper troposphere reveals that variations in meridional winds, crucial for determining the HC extent, are primarily driven by the differences in the horizontal eddy momentum flux derivative. The findings indicate that the equatorward shift in meridional temperature gradients enhances subtropical zonal winds and baroclinicity along their equatorial flanks, amplifying equatorward‐propagating Rossby waves. This, in turn, alters the eddy momentum flux, reshaping the pattern of the derivatives of horizontal eddy momentum flux, constraining meridional winds, and resulting in the equatorward movement of the HC subsiding edge. A scaling theory further supports the results of the HC contraction, showing that the increased subtropical zonal winds and the equatorward shift of the Intertropical Convergence Zone (ITCZ) elevate the atmospheric angular momentum and eventually limit the expansion of the HC.