The
U37K′ proxy for past sea surface temperature (SST) is based on the unsaturation ratio of C37 alkenones. It is considered a diagenetically robust proxy, but biases have been invoked because the index can be altered by preferential degradation of the C37:3 alkenone, resulting in higher reconstructed SST. However, alkenone degradation rate constants are poorly constrained, making it difficult to evaluate the plausibility of such a bias. Therefore, we quantitatively assessed the effect of (1) different alkenone degradation rate constants; (2) differential degradation factors between diunsaturated and triunsaturated C37 alkenones; (3) and initial
U37K′ values on the
U37K′ paleothermometer for two depositional environments (shelf and upper slope), by means of a reaction‐transport model (RTM). RTM results reveal that preferential degradation of C37:3 can potentially alter the original signal of the
U37K′ paleothermometer, but SST biases (ΔSST) are largely within
U37K′ calibration error (ΔSST <1.5°C) assuming realistic model parameters. The magnitude of ΔSST is largely determined by the degradation rate constant, but it also increases with higher differential degradation factors. Additionally, initial
U37K′ values exert a nonlinear influence on the extent of potential SST bias, with midrange values (0.4 <
0.25emU37K′ < 0.6) being most sensitive. The most significant changes occur in the shallowest sediment layers and are attenuated with burial time/depth. Scenarios where ΔSST >1.5°C are associated with marked downcore decreases in alkenone concentration. Consequently, we caution against the interpretation of
U37K′ indices when extensive degradation results in very low alkenone concentrations (<5 ng g−1).