The Antarctic Intermediate Water (AAIW) is an important contributor to the upper limb of the Atlantic Meridional Overturning Circulation (AMOC), redistributing heat, salinity, nutrients, and carbon in the Atlantic Ocean. The Mediterranean Outflow Water (MOW) transports heat and salt into the northern high-latitude Atlantic, thus playing an important role in driving the AMOC. However, the northward extent of AAIW in the Atlantic during the last deglaciation remains controversial and the Holocene variability of MOW is not well understood. In the modern east Atlantic Ocean, the northern boundary of AAIW meets the southern boundary of MOW off southern Iberia, which makes the Iberian margin an ideal region to unravel whether AAIW penetrated to the North Atlantic during the last deglaciation and the MOW dynamics during the Holocene. We present benthic foraminiferal Ba/Ca, Cd/Ca and Mg/Ca ratios, δ13C offsets between Planulina ariminensis and Globobulimina spp., and benthic foraminiferal faunal records of IODP Site U1391 drilled in the intermediate-depth Atlantic off the southwestern Iberian margin. The dominance of the Cassidulina neoteretis-Nonionella turgida assemblage, combined with low Δ13CP. ariminensis-Globobulimina spp. offsets, high Ba/Ca and Cd/Ca ratios and low Mg/Ca ratios during the Younger Dryas (YD), indicates the presence of AAIW in the mid-latitude North Atlantic intermediate waters. Going into the Holocene, the Cassidulina neoteretis - Nonionella turgida assemblage was shifted to the Melonis affinis – Bulimina marginata assemblage, accompanied by frequent occurrences of the MOW indicator Planulina ariminensis, which suggests that Site U1391 was mainly bathed by MOW. During the middle Holocene (∼9.4–6.0 ka), the relative abundance of P. ariminensis and Ba/Ca ratios decreased significantly, and the proportions of oxic species Osangularia culter, Bulimina alazanensis and Cibicidoides pachyderma increased, which were likely attributed to the influence of large volumes of oxygen-enriched North Atlantic Central Water. Between ∼6.0 ka and ∼ 3.6 ka, an increase in the relative abundance of P. ariminensis and Ba/Ca ratios, and a decrease in the relative abundance of O. culter assemblage suggest intensified MOW at Site U1391. However, from ∼3.6 ka onward MOW weakened at the study site, as evidenced by a distinct decrease in the proportion of P. ariminensis and Ba/Ca ratios. The long-term trend of MOW variations over the past 13 kyrs shows that the weakening of MOW dynamics at Site U1391 is related to the prevailing dry climates in the Mediterranean region, which is also reflected in its millennial-scale variations. Benthic Ba/Ca, Cd/Ca and Mg/Ca records exhibit high-frequency oscillations centred on periods of ∼1.8 kyrs. Lower Ba/Ca, Cd/Ca and Mg/Ca ratios suggest a weak MOW signal at Site U1391, concurrent with the Bond events during the Holocene.