Discovered at the very end of the 20th century, the Indian Ocean Dipole (IOD) is a mode of natural climate variability that arises out of coupled ocean–atmosphere interaction in the Indian Ocean. It is associated with some of the largest changes of ocean–atmosphere state over the equatorial Indian Ocean on interannual time scales. IOD variability is prominent during the boreal summer and fall seasons, with its maximum intensity developing at the end of the boreal-fall season. Between the peaks of its negative and positive phases, IOD manifests a markedly zonal see-saw in anomalous sea surface temperature (SST) and rainfall—leading, in its positive phase, to a pronounced cooling of the eastern equatorial Indian Ocean, and a moderate warming of the western and central equatorial Indian Ocean; this is accompanied by deficit rainfall over the eastern Indian Ocean and surplus rainfall over the western Indian Ocean. Changes in midtropospheric heating accompanying the rainfall anomalies drive wind anomalies that anomalously lift the thermocline in the equatorial eastern Indian Ocean and anomalously deepen them in the central Indian Ocean. The thermocline anomalies further modulate coastal and open-ocean upwelling, thereby influencing biological productivity and fish catches across the Indian Ocean. The hydrometeorological anomalies that accompany IOD exacerbate forest fires in Indonesia and Australia and bring floods and infectious diseases to equatorial East Africa. The coupled ocean–atmosphere instability that is responsible for generating and sustaining IOD develops on a mean state that is strongly modulated by the seasonal cycle of the Austral-Asian monsoon; this setting gives the IOD its unique character and dynamics, including a strong phase-lock to the seasonal cycle. While IOD operates independently of the El Niño and Southern Oscillation (ENSO), the proximity between the Indian and Pacific Oceans, and the existence of oceanic and atmospheric pathways, facilitate mutual interactions between these tropical climate modes.