We present micropalaeontological and grain-size records for a set of sediment cores from the Gulf of Cadiz (southwest Spain) that reflect changes in the position and strength of the Mediterranean Outflow (MO) current. The cores sample a sediment drift (the Gil Eanes Drift) that is positioned lower on the slope in the Gulf of Cadiz than the position of the main current today. The data indicate that the drift is of glacial age and that the glacial MO current was positioned lower on the slope than today but also that it was active over a considerably reduced area of the slope. We argue that this observation is consistent with physical constraints on the Gibraltar Exchange and on the likely settling and spreading behavior of the MO plume along the Iberian Margin under glacial environmental and sea level conditions. The deeper settling of the MO is likely to have influenced the formation of glacial North Atlantic Intermediate Water and also may have exerted indirect influence on the formation of glacial North Atlantic Deep Water.