The European Parliament and The Council of the European Union have established the Water Framework Directive (2000/60/EC) for all European Union member states to achieve, at least, “good” ecological status of all water bodies larger than 50 hectares in Europe. The MultiSpectral Instrument onboard European Space Agency satellite Sentinel-2 has suitable 10, 20, 60 m spatial resolution to monitor most of the Estonian lakes as required by the Water Framework Directive. The study aims to analyze the suitability of Sentinel-2 MultiSpectral Instrument data to monitor water quality in inland waters. This consists of testing various atmospheric correction processors to remove the influence of atmosphere and comparing and developing chlorophyll a algorithms to estimate the ecological status of water in Estonian lakes. This study shows that the Sentinel-2 MultiSpectral Instrument is suitable for estimating chlorophyll a in water bodies and tracking the spatial and temporal dynamics in the lakes. However, atmospheric corrections are sensitive to surrounding land and often fail in narrow and small lakes. Due to that, deriving satellite-based chlorophyll a is not possible in every case, but initial results show the Sentinel-2 MultiSpectral Instrument could still provide complementary information to in situ data to support Water Framework Directive monitoring requirements.