Global climate change and the impacts of ocean warming, ocean acidification and declining water quality are adversely affecting coral-reef ecosystems. This is of great concern, as coral reefs provide numerous ecosystem, economic and social services. Corals are also recognised as being amongst the strongest individual sources of natural atmospheric sulfur, through stress-induced emissions of dimethylsulfide (DMS). In the clean marine boundary layer, biogenic sulfates contribute to new aerosol formation and the growth of existing particles, with important implications for the radiative balance over the ocean. Evidence suggests that DMS is not only directly involved in the coral stress response, alleviating oxidative stress, but also may create an “ocean thermostat” which suppresses sea surface temperature through changes to aerosol and cloud properties. This review provides a summary of the current major threats facing coral reefs and describes the role of dimethylated sulfur compounds in coral ecophysiology and the potential influence on climate. The role of coral reefs as a source of climatically important compounds is an emerging topic of research; however the window of opportunity to understand the complex biogeophysical processes involved is closing with ongoing degradation of the world's coral reefs. The greatest uncertainty in our estimates of radiative forcing and climate change is derived from natural aerosol sources, such as marine DMS, which constitute the largest flux of oceanic reduced sulfur to the atmosphere. Given the increasing frequency of coral bleaching events, it is crucial that we gain a better understanding of the role of DMS in local climate of coral reefs.