The influence of air-sea interaction on the vacillation of the southern midlatitude zonal mean zonal winds is explored by comparing a 1000-year simulation of a coupled atmosphere-ocean general circulation model with 500-year simulations of the atmospheric model with either a simple mixed layer ocean or specified sea surface temperatures (SSTs). In the interactive models the zonally averaged SST responds, in a dipole pattern, to the surface heat fluxes perturbed by the vacillation, with ocean dynamics modifying the pattern, particularly around 60¿S. The feedback of the ocean on the atmosphere is most prominent in the lower tropospheric temperatures, but it is also significant on the interannual and longer time scales in the tropospheric zonal winds. Interdecadal variability of the 500-hPa wind index is increased 50% by the ocean. However, the structure of the wind anomaly differs only a little as the timescale increases. A simple stochastic model of the system is able to reproduce the index statistics over timescales from months to decades. Strong relationships exist between the winds, SSTs, and precipitation anomalies in both annual and 4-year means. However, the predictability of temperatures and rainfall, using either wind or SST indices, is limited by the small persistence of the wind anomalies and the weak influence of the SSTs. Relationships between time-filtered indices and the following annual means are substantial, comparable to results recently found for the Antarctic Circumpolar Wave. However, these are not realizable as predictions, prompting caution with regard to predictability based on Southern Ocean temperatures. ¿ 2001 American Geophysical Union