Paleocene deposits of the Subbetic Zone (southern Spain) provide outstanding evidence of the influence of sea mountains on deep marine currents. This part of the Betic Cordillera External Zones corresponds to the distal and deepest area of the original basin, where hemipelagic sedimentation prevailed during most of the Turonian-early Lutetian interval. This sedimentation is recorded by the so-called Capas Rojas and Quipar-Jorquera formations, units up to 250 m and 425 m thick, respectively, predominantly consisting of marls and marl/limestone alternations. These units draped and smoothed an irregular submarine topography of fault-bounded Mesozoic carbonate blocks. Some of these blocks became uplifted and subaerially exposed after a mid-Danian tectonic episode, transforming the Subbetic Zone in an archipelago during the late Danian-early Selandian interval. The emerged blocks were colonized by Microcodium-producing terrestrial plants, Microcodium consisting of aggregates of submilimetric monocrystalline calcite grains. Massive resedimentation of these grains into depressed zones of the archipelago resulted in discrete accumulations up to 100 m thick but of comparatively modest extent (≤150 km2) of calcarenites rich in Microcodium remains. The study of one of these calcarenite units, the Olivares Formation, demonstrates that most of its constituent Microcodium remains were brought to the deep sea by turbidity currents, but were subsequently reworked by oscillatory and unidirectional bottom-currents. The analysis of the Capas Rojas Formation in its type section and surrounding areas, where Microcodium-rich calcarenites are absent, demonstrates that the Danian-Selandian succession is riddled with hiatuses, which resulted in a drastic thickness reduction of the interval. Clearly, the rugged sea floor topography resulting from the mid-Danian tectonic event enhanced the sedimentary transport capacity of bottom-currents that, in addition to piling-up Microcodium-rich calcarenites in restricted zones, disturbed the hemipelagic sedimentation elsewhere in the Subbetic Zone. From late Thanetian times onwards the background hemipelagic sedimentation typical of the Capas Rojas progressively resumed throughout the Subbetic Zone, recording the gradual abatement of the sea floor relief by protracted erosion and/or subsidence.