The southeastern tropical Indian Ocean (SETIO) was characterized by unusually cold sea surface temperature (SST) and strong northwestward alongshore surface winds during 1994. Using multi-source data sets including ocean model simulation, two key processes are identified for the SETIO cooling. Entrainment cooling produced most of the negative SST anomaly near the coast whereas evaporative cooling dominated the process away from the coast. Convection was anomalously suppressed over SETIO and the divergence of moist air from the region helped the local evaporative process. This also led to anomalous moisture transports that explain the enhanced convection over the central equatorial Indian Ocean, India and East Asia. The positive feedback between the enhanced and suppressed convection regions in turn helped maintain the surface wind anomalies. These evidences clearly indicate the existence of an ocean-atmosphere coupled phenomenon in the Indian Ocean during 1994. ¿ 1999 American Geophysical Union