AbstractA 250 year simulation of a strongly eddying global version of the Parallel Ocean Program (POP) model reveals a new mode of intrinsic multidecadal variability, the Southern Ocean Mode (SOM), with a period of 40–50 year. The peak‐to‐peak difference in the global ocean heat content within a multidecadal cycle is up to 60 ZJ. This change results from surface heat flux variations in the South Atlantic and propagation of temperature anomalies along the Antarctic Circumpolar Current and into the Weddell gyre around 30°E. The temperature anomalies propagate as deep as 5000 m along the isopycnals between 50°S and 30°S and induce multidecadal changes in the Atlantic Meridional Overturning Circulation. A positive feedback loop between the generation of eddies through baroclinic instability and the dynamics of the mean circulation is essential for the existence of the SOM. The dominant physics appears similar to that responsible for variability found in a three‐layer quasi‐geostrophic eddy‐resolving model. This combined with the fact that the SOM is not found in a noneddying version of the same global POP model further suggests that eddy processes are crucial for its existence and/or excitation.