Intermediate water variability at multicentennial scales is documented by 340,000-year-long isotope time series from bottom-dwelling foraminifers at a mid-depth core site in the southwest Pacific. Periods of sudden increases in intermediate water production are linked with transient Southern Hemisphere warm episodes, which implies direct control of climate warming on intermediate water conversion at high southern latitudes. Coincidence with episodes of climate cooling and minimum or halted deepwater convection in the North Atlantic provides striking evidence for interdependence of water mass conversion in both hemispheres, with implications for interhemispheric forcing of ocean thermohaline circulation and climate instability.