The sea surface temperature (SST) signature of Atlantic multidecadal variability (AMV) is a key driver of climate variability in surrounding regions. Low-frequency Atlantic meridional overturning circulation (AMOC) variability is often invoked as a key driving mechanism of AMV-related SST anomalies. However, the origins of both AMV and multidecadal AMOC variability remain areas of active research and debate. Here, using coupled ensemble experiments designed to isolate the climate response to buoyancy forcing associated with the North Atlantic Oscillation in the Labrador Sea, we show that ocean dynamical changes are the essential drivers of AMV and related climate impacts. Atmospheric teleconnections also play an important role in rendering the full AMV pattern by transmitting the ocean-driven subpolar SST signal into the rest of the basin, including the tropical North Atlantic. As such, the atmosphere response to the tropical AMV in our experiments is limited to a relatively small area in the Atlantic sector in summertime, suggesting that it could be overestimated in widely adopted protocols for AMV pacemaker experiments.