The intermetallic FeSi exhibits an unusual temperature dependence in its electronic and magnetic degrees of freedom, epitomized by the cross-over from a low-temperature nonmagnetic semiconductor to a high-temperature paramagnetic metal with a Curie-Weisslike susceptibility. Many proposals for this unconventional behavior have been advanced, yet a consensus remains elusive. Using realistic many-body calculations, we here reproduce the signatures of the metal-insulator cross-over in various observables: the spectral function, the optical conductivity, the spin susceptibility, and the Seebeck coefficient. Validated by quantitative agreement with experiment, we then address the underlying microscopic picture. We propose a new scenario in which FeSi is a band insulator at low temperatures and is metalized with increasing temperature through correlation induced incoherence. We explain that the emergent incoherence is linked to the unlocking of iron fluctuating moments, which are almost temperature independent at short timescales. Finally, we make explicit suggestions for improving the thermoelectric performance of FeSi based systems. strongly correlated electrons | Kondo insulator | metal-insulator transitions | electronic structure | material science I ron-based narrow gap semiconductors such as FeSi, FeSb 2 , or FeGa 3 show a pronounced resemblance to heavy fermion Kondo insulators in their charge (1-4) and spin (4, 5) degrees of freedom. Besides, these systems display a large thermopower (1,3,(6)(7)(8)(9), heralding their potential use in solid-state devices. There are two complementary approaches for explaining these unusual properties: On one hand, it has been proposed that lattice degrees of freedom play a crucial role (7,10,11). On the other hand, electron-electron correlation effects have been invoked on the basis of both experimental results (2-4, 8), as well as theoretical model studies (12-15), advocating, in particular, Hubbard physics (12,14,15), spin fluctuations (13), spin-state transitions (16, 17), or a thermally induced mixed valence (18).Here, we go beyond modelistic approaches and investigate the effect of correlations on prototypical FeSi from the ab initio perspective. The key issues that we address are (i) can electronic Coulomb correlations alone quantitatively account for the signatures of the temperature induced cross-over in various observables, and (ii) what is the underlying microscopic origin of this behavior? As a realistic many-body approach, we employ the combination of density functional theory (DFT) and dynamical mean-field theory (DMFT), DFT þ DMFT (for a review see, e.g., ref. 19) as implemented in ref. 20. For the calculation of the Seebeck coefficient, we have extended our previous work (9) for DFT computations to include the DMFT self-energy in a full orbital setup. For details, see SI Text.At low temperatures, iron silicide is a semiconductor with a gap Δ ≈ 50-60 meV (2, 5, 21), with the resistivity (1, 6) and the magnetic susceptibility (5) following activation laws. At 150-20...