Sea-surface height data acquired by the TOPEX/POSEIDON satellite over the Arabian Sea from October 1992 to October 1998 are analyzed. Strong seasonal fluctuations are found between 6degrees and 10degreesN, which are mainly associated with westward propagating annual Rossby waves radiated from the western side of the Indian subcontinent and that are continuously forced by the action of the wind-stress curl over the central Arabian Sea. An analysis of hydrographic data acquired during August 1993 and during January 1998 at 8degreesN in the Arabian Sea reveals the existence of first- and second-mode annual Rossby waves. These waves, which can be traced as perturbations in the density fields, have wavelengths of 12 x 10(3) and 4.4 x 10(3) km as well as phase velocities of 0.38 and 0.14m/s, respectively. The waves are associated with a time-dependent meridional overturning cell that sloshes water northward and southward. Between 58degrees and 68degreesE in the central Arabian Sea, we found a Rossby-wave induced transport in the upper 500 m of about 10 Sv southward in August 1993 and northward in January 1998. Below 2000 m, there was still a northward transport of 3.2 Sv in August 1993 and a southward transport of 4.8 Sv in January 1998. A comparison of steric height differences between August 1993 and January 1998 calculated from the observed density fields as well as calculated from the reconstructed density fields using first- and second-mode annual Rossby waves agree quite well with the corresponding sea-surface height differences. Implications resulting from the reflection of annual Rossby waves, like fluctuations of the western boundary currents, are discussed. (C) 2002 Elsevier Science Ltd. All rights reserved.