Coral palaeoclimatic studies are under way at many sites throughout the wet tropics. However, arid environments have received less attention. Here we report a high-resolution, 63 yr record of coral d18O and d13C extracted from a Porites colony from the Dahlak Archipelago, off the Eritrean coast, in the southern Red Sea. The annual cycles of the coral d18O and d13C are inversely related while their inter-annual variations show a strong positive correlation, with similar inter-decadal trends. Inter-annual variations in coral d18O show a relatively weak correlation with the southern Red Sea SST, but are strongly correlated with the Indian Ocean SST, especially on the decadal time-scale. The range of the inter-annual variations in the coral d18O is high compared to changes in local SST, due to the amplifying effect of simultaneous changes in water isotopic composition. Due to this amplification of the climate signal the coral provides a better indication of regional oceangraphic behaviour than the local SST record. The norrtheast monsoon signal in the coral d18O dominates the mean annual signal and shows the best correlation with the instrumental data sets. It appears that variations in the coral d18O are controlled mainly by variations in the intensity of surface water influx from the Indian Ocean to the Red Sea during the winter northeast monsoon. Of particular significance is that the decadal time-scale variations in the coral skeletal d18O are closely correlated with both the Indian Ocean SST and with variations in the Pacific-based Southern Oscillation index. That is, isotopically light coral skeleton, indicating strong NE monsoon Red Sea inflow, correlates with periods of high Indian Ocean SST and with predominantly negative (El Nino) phases of the Southern Oscillation. The simultaneous nature of inter-decadal changes in Asian monsoon and ENSO behaviour suggest pan-Indo-Pacific tropical climate reorganisation and evolution.