Abstract Since 1950, there has been an increase in rainfall over North West Australia (NWA), occurring mainly during the Southern Hemisphere (SH) summer season. A recent study using twentieth-century multimember ensemble simulations in a global climate model forced with and without increasing anthropogenic aerosols suggests that the rainfall increase is attributable to increasing Northern Hemisphere aerosols. The present study investigates the dynamics of the observed trend toward increased rainfall and compares the observed trend with that generated in the model forced with increasing aerosols. It is found that the observed positive trend in rainfall is projected onto two modes of variability. The first mode is associated with an anomalously low mean sea level pressure (MSLP) off NWA instigated by the enhanced sea surface temperature (SST) gradients toward the coast. The associated cyclonic flows bring high-moisture air to northern Australia, leading to an increase in rainfall. The second mode is associated with an anomalously high MSLP over much of the Australian continent; the anticyclonic circulation pattern, over northern Australia, determines that when rainfall is anomalously high, west of 130°E, rainfall is anomalously low east of this longitude. The sum of the upward trends in these two modes compares well to the observed increasing trend pattern. The modeled rainfall trend, however, is generated by a different process. The model suffers from an equatorial cold-tongue bias: the tongue of anomalies associated with El Niño–Southern Oscillation extends too far west into the eastern Indian Ocean. Consequently, there is an unrealistic relationship in the SH summer between Australian rainfall and eastern Indian Ocean SST: the rise in SST is associated with increasing rainfall over NWA. In the presence of increasing aerosols, a significant SST increase occurs in the eastern tropical Indian Ocean. As a result, the modeled rainfall increase in the presence of aerosol forcing is accounted for by these unrealistic relationships. It is not clear whether, in a model without such defects, the observed trend can be generated by increasing aerosols. Thus, the impact of aerosols on Australian rainfall remains an open question.