The SOHO and Cluster missions form a single ESA cornerstone. Yet they observe very different regions in our solar system: the solar atmosphere on one hand and the Earth's magnetosphere on the other. At the same time the Ulysses mission provides observations in the third dimension of the heliosphere, and many others add to the picture from the Lagrangian point L1 to the edge of the heliosphere. It is the aim of this ISSI volume to tie these observations together in addressing the topic of Solar Dynamics and its Effects on the Heliosphere and Earth, thus contributing to the International Living With a Star (ILWS) program. The volume starts out with an assessment and description of the reasons for solar dynamics and how it couples into the heliosphere. The three subsequent sections are each devoted to following one chain of events from the Sun all the way to the Earth's magnetosphere and ionosphere: The normal solar wind chain, the chain associated with coronal mass ejections, and the solar energetic particles chain. The final section is devoted to common physical processes occurring both at the Sun and in the magnetosphere such as reconnection, shock acceleration, dipolarisation of magnetic field, and others.