A numerical circulation model with 1/6¿ resolution and an accurate topography formulation explains details of the observed circulation in the Irminger and Labrador Seas that were recently revealed by Lavender et al. [2000>. We show that the recirculation pattern is established through a locally wind induced flow controlled by the bottom topography and enhanced through remote baroclinic forcing by the dense plume of Denmark Strait overflow water. The basic circulation is a robust feature in a hierarchy of model setups. It exists in the purely barotropic case driven by steady winds and is even maintained when realistic daily forcing is added. The narrow recirculation zone is manifested by a sea level depression spanning from the Denmark Strait across the Irminger into the Labrador Sea. ¿ 2001 American Geophysical Union