Eddy-resolving regional ocean model results in conjunction with synthetic float trajectories and observations provide new insights into the recirculation of the Atlantic Water (AW) in Fram Strait that significantly impacts the redistribution of oceanic heat between the Nordic Seas and the Arctic Ocean. The simulations confirm the existence of a cyclonic gyre around the Molloy Hole near 80°N, suggesting that most of the AW within the West Spitsbergen Current recirculates there, while colder AW recirculates in a westward mean flow south of 79°N that primarily relates to the eastern rim of the Greenland Sea Gyre. The fraction of waters recirculating in the northern branch roughly doubles during winter, coinciding with a seasonal increase of eddy activity along the Yermak Plateau slope that also facilitates subduction of AW beneath the ice edge in this area.