The boreal summer of 2008 was unusual for the Indian monsoon, featuring exceptional heavy loading of dust aerosols over the Arabian Sea and northern-central India, near normal all-India rainfall, but excessive heavy rain, causing disastrous flooding in the Northern Indian Himalaya Foothills (NIHF) regions, accompanied by persistent drought conditions in central and southern India. Using NASA Unified-physics Weather Research Forecast (NUWRF) model with fully interactive aerosol physics and dynamics, we carried out three sets of 7-day ensemble model forecast experiments: 1) control with no aerosol, 2) aerosol radiative effect only and 3) aerosol radiative and aerosol-cloud-microphysics effects, to study the impacts of aerosol-monsoon interactions on monsoon variability over the NIHF during the summer of 2008. Results show that aerosol-radiation interaction (ARI), i.e., dust aerosol transport, and dynamical feedback processes induced by aerosol-radiative heating, plays a key role in altering the large-scale monsoon circulation system, reflected by an increased north-south tropospheric temperature gradient, a northward shift of heavy monsoon rainfall, advancing the monsoon onset by 1-5 days over the HF, consistent with the EHP hypothesis (Lau et al. 2006). Additionally, we found that dust aerosols, via the semi-direct effect, increase atmospheric stability, and cause the dissipation of a developing monsoon onset cyclone over northeastern India/northern Bay of Bengal. Eventually, in a matter of several days, ARI transforms the developing monsoon cyclone into meso-scale convective cells along the HF slopes. Aerosol-Cloud-microphysics Interaction (ACI) further enhances the ARI effect in invigorating the deep convection cells and speeding up the transformation processes. Results indicate that even in short-term (up to weekly) numerical forecasting of monsoon circulation and rainfall, effects of aerosol-monsoon interaction can be substantial and cannot be ignored.