The explicit representation of cryospheric components in Earth system models has become more and more important over the last years. However, there are few advanced coupled Earth system models that employ interactive icebergs, and most iceberg model studies focus on iceberg trajectories or ocean surface conditions. Here, we present multi-centennial simulations with a fully coupled Earth system model including interactive icebergs to assess the effects of heat and freshwater fluxes by iceberg melting on deep-ocean characteristics. The icebergs are modeled as Lagrangian point particles and exchange heat and freshwater fluxes with the ocean. They are seeded in the Southern Ocean, following a realistic present-day size distribution. Total calving fluxes and the locations of discharge are derived from an ice sheet model output which allows for implementation in coupled climate-ice sheet models. The simulations show a cooling of up to 0.2ĝ€¯K of deep-ocean water masses in all ocean basins that propagates from the southern high latitudes northward. We also find enhanced deep-water formation in the continental shelf area of the Ross Sea, a process commonly underestimated by current climate models. The vertical stratification is weakened by enhanced sea ice formation and duration due to the cooling effect of iceberg melting, leading to a 10ĝ€¯% reduction of the buoyancy frequency in the Ross Sea. The deep-water formation in this region is increased by up to 10ĝ€¯%. By assessing the effects of heat and freshwater fluxes individually, we find latent heat flux to be the main driver of these water mass changes. The altered freshwater distribution by freshwater fluxes and synergetic effects play only a minor role. Our results emphasize the importance of realistically representing both heat and freshwater fluxes in the high southern latitudes.