The formation of dense water in the Aegean Sea is important as it affects the deep circulation and the hydrography of the Eastern Mediterranean Sea. In this study, the variability of dense water formation is investigated in relation to forcing mechanisms from 1947 to 2023 in the subbasins of the Aegean Sea, utilising in situ observations from various sources, which have been analysed in combination with satellite altimetry and reanalyses products. The analysis reveals that the Aegean Sea has been in a state of increased dense water formation since 2017 due to the combination of increased surface buoyancy loss and reduced Black Sea water inflow. Extremely high salinity has been recorded in the intermediate layers of the Aegean Sea since 2019. The anticyclonic circulation of the North Ionian gyre during 2017 and 2018 probably also contributed to the rapid transport of highly saline waters in the intermediate and, through dense water formation, the deep layers of the Aegean Sea in 2019. Until 2022, the dense waters formed during the peak of the Eastern Mediterranean Transient still occupied the bottom layers of some deep subbasins of the North and South Aegean; however, the 29.4 kg m−3 isopycnal in the North Aegean and the 29.3 kg m−3 isopycnal in the Southeastern Aegean have gradually deepened by 800 m, permitting the waters forming in the last ten years in the Aegean Sea to settle at ever greater depths. Temperature controls the density variability of the Cretan intermediate water up to the decadal time scale. Increased data availability since 2010 was sufficient to clarify that intrusions of dense water from the North–Central Aegean Sea contributed to the erosion of the Eastern Mediterranean transitional waters in the South Aegean Sea after 2017, as well as to raising the intermediate water masses of the South Aegean to shallower depths. The erosion of the transitional Mediterranean waters in the South Aegean Sea between 1947 and 1955 and 1973 and 1980 coincided with increased dense water formation in the North–Central Aegean Sea. During the peak of the Eastern Mediterranean Transient, the North Ionian circulation, the Black Sea water inflow, the Atlantic Multidecadal Oscillation, and the surface buoyancy fluxes favoured dense water formation in the Aegean Sea.