The present study investigates the influence of the monsoon trough (MT) on the interannual variability of tropical cyclone (TC) activity over the western North Pacific during July–November for the period 1979–2007. It is shown that the TC activity is closely related to the MT location. During the years when the MT extends eastward (retreats westward), more (less) TCs form within the southeastern quadrant of the western North Pacific. Such a relationship can be explained by the changes in large-scale environmental factors associated with the movement of the MT. An eastward extension of the MT coincides with warmed ocean surface, enhanced convection, increased relative humidity in the lower and midtroposphere, reduced vertical shear of zonal wind, intensified upper-level divergence, and low-level anomalous cyclonic vorticity over the southeast quadrant of the western North Pacific. These conditions associated with the eastern extension of the MT are favorable for TC genesis, while those associated with the westward retreat of the MT are not. Diagnosis of the barotropic energy conversion indicates that synoptic-scale disturbances moving westward from tropical eastern Pacific will gain the energy from the mean flow when they meet with the eastward-extending MT. This is an important reason for the linkage between MT variability and TC genesis over the western North Pacific.