Observed sea surface temperature (SST) in the Bay of Bengal exhibits intraseasonal variability during summer monsoon. An ocean general circulation model (OGCM) driven by satellite derived daily winds and heat fluxes during summer of 2000 is able to reproduce aspects of intraseasonal variability (10–20 days) in SST. The intra-seasonal SST simulated using satellite derived shortwave flux compares more favorably with buoy data than that produced using the NCEP reanalysis flux. Analysis of the terms in the heat balance equation of MLD suggests that in the central Bay of Bengal local net heat flux and vertical diffusive mixing changes drive the SST ISOs. Thus, the SST ISOs in this region are governed primarily by one-dimensional processes.