The low-frequency sea level variability in the South China Sea (SCS) is examined using high-resolution regional ocean model simulations that span the last six decades. The analysis reveals interdecadal oscillations with a periodicity of 12–13 years as the dominant mode of sea level variability in the SCS. The fluctuations in the Luzon Strait transport (LST) are identified as primary drivers of interannual to interdecadal sea level variability, rather than atmospheric forcing within the SCS. Fourier spectrum analysis is employed to investigate the association between SCS sea level variability and the Interdecadal Pacific Oscillation (IPO), using principal components of SCS sea surface height anomalies, wind stress curl, wind stress components, net short wave flux, as well as the LST and various climate indices. The variations in the SCS sea level are driven by the IPO, which modifies the LST and ocean heat content, impacting the steric sea level.