The Pacific Walker Circulation (PWC) fluctuates on interannual and multidecadal timescales under the influence of internal variability and external forcings. Here, we provide observational evidence that the 11-y solar cycle (SC) affects the PWC on decadal timescales. We observe a robust reduction of east-west sea-level pressure gradients over the Indo-Pacific Ocean during solar maxima and the following 1-2 y. This reduction is associated with westerly wind anomalies at the surface and throughout the equatorial troposphere in the western/central Pacific paired with an eastward shift of convective precipitation that brings more rainfall to the central Pacific. We show that this is initiated by a thermodynamical response of the global hydrological cycle to surface warming, further amplified by atmosphere-ocean coupling, leading to larger positive ocean temperature anomalies in the equatorial Pacific than expected from simple radiative forcing considerations. The observed solar modulation of the PWC is supported by a set of coupled ocean-atmosphere climate model simulations forced only by SC irradiance variations. We highlight the importance of a muted hydrology mechanism that acts to weaken the PWC. Demonstration of this mechanism acting on the 11-y SC timescale adds confidence in model predictions that the same mechanism also weakens the PWC under increasing greenhouse gas forcing.