Annual bluegrass (Poa annua) is a turfgrass species prone to winterkill-induced damage such as from ice encasement stress. This research aimed to determine whether different levels of soil volumetric water content (SWC) influence cold acclimation and recovery from ice encasement. Annual bluegrass was exposed to 8%, 12%, and 20% SWC treatments during cold acclimation in growth chambers. After cold acclimation, plants were subjected to ice encasement by misting at –3 °C until a 2.5-cm ice layer was formed. On 0 (no ice encasement exposure), 40, and 80 days of treatment, plants were analyzed for recovery (percent green canopy cover over time), and leaf, crown, and root tissues were harvested for lipid peroxidation and total nonstructural carbohydrates (TNC) including storage carbohydrates and water-soluble carbohydrates (WSC). Low SWC during cold acclimation enhanced recovery from cold temperatures and ice encasement. Root carbohydrates were influenced by SWC regimes during cold acclimation since day 0 plant roots exposed to the 8% SWC treatment had 143.9% higher TNC and 137.6% higher WSC compared with day 0 plants exposed to 12% and 20% SWC. Root levels of carbohydrates and lipid peroxidation were least influenced by cold and ice encasement among the organs evaluated. Prolonged freezing conditions and ice encasement reduced leaf and crown tissue carbohydrates and increased lipid peroxidation compared with day 0 plants not exposed to freezing temperatures and ice encasement. After 40 days of ice encasement, plants exposed to the 8% SWC treatment recovered faster than plants cold acclimated at higher soil moisture levels. Average percent canopy cover after 36 days of recovery in the greenhouse was 71.9% higher for 8% SWC treated plants than in 12% and 20% SWC treated plants. Turfgrass managers may benefit from annual bluegrass putting green management strategies to reduce fall soil moisture. Given that soil moisture did not significantly influence carbohydrate or lipid peroxidation results, except for in roots, additional research is needed to understand the mechanism associated with these findings.