A magnetoresistive (MR) sensor having reduced operating temperature is disclosed. The MR sensor, which includes an MR stack having a magnetoresistive layer, is configured to operate in a current-perpendicular-to-plane (CPP) mode wherein a sense current flows substantially perpendicular to a longitudinal plane of the magnetoresistive layer. The MR sensor further includes a thermal sink layer positioned with respect to the MR stack to reduce an operating temperature of the magnetoresistive sensor. The thermal sink layer is made of a material having high thermal conductivity, and is preferably separated from the MR stack by a metallic cap or seed layer.