Abstract The influence of the Indonesian Throughflow (ITF) on the dynamics and the thermodynamics in the southwestern Indian Ocean (SWIO) is studied by analyzing a forced ocean model simulation for the Indo-Pacific region. The warm ITF waters reach the subsurface SWIO from August to early December, with a detectable influence on weakening the vertical stratification and reducing the stability of the water column. As a dynamical consequence, baroclinic instabilities and oceanic intraseasonal variabilities (OISVs) are enhanced. The temporal and spatial scales of the OISVs are determined by the ITF-modified stratification. Thermodynamically, the ITF waters influence the subtle balance between the stratification and mixing in the SWIO. As a result, from October to early December, an unusual warm entrainment occurs and the SSTs warm faster than just net surface heat flux driven warming. In late December and January, signature of the ITF is seen as a relatively slower warming of SSTs. A conceptual model for the processes by which the ITF impacts the SWIO is proposed.