Abstract The Three Gorges Reservoir is well known for providing numerous benefits, but has also been fraught with controversy due to environmental issues. Such large channel‐type reservoirs are characterized by significant inflow, long channel shape, and strong backwater, exhibiting unique hydrodynamic characteristics. Previous studies have examined their impacts on river flows, sediment transport, the ecosystem, and social consequences. However, its own hydrodynamic characteristics are less studied. Here, by exploiting the Surface Water and Ocean Topography (SWOT) data, we gain novel insights into reservoir water surface hydrodynamics and its relations with inflow and release. Our results suggest that the high‐resolution SWOT observations allow us to capture the dynamics of the longitudinal profiles as well as the dam‐induced backwater effects. Furthermore, we propose a new approach to estimate reservoir release by leveraging SWOT‐derived slope and water level. Our findings highlight that SWOT observations can substantially deepen our understanding of reservoir dynamics, which has been challenging previously.