We analyze the dynamics and observational predictions of supersymmetric hybrid inflation in the warm regime, where dissipative effects are mediated by the waterfall fields and their subsequent decay into light degrees of freedom. This produces a quasi-thermal radiation bath with a slowly-varying temperature during inflation and further damps the inflaton's motion, thus prolonging inflation. As in the standard supercooled scenario, inflation ends when the waterfall fields become tachyonic and can no longer sustain a nearly constant vacuum energy, but the interaction with the radiation bath makes the waterfall fields effectively heavier and delays the phase transition to the supersymmetric minimum. In this work, we analyze for the first time ...