Considering spin-orbit coupling, the tetragonal crystal field, and all relevant superexchange processes including quantum interference, we derive expressions for the energy levels of the vanadium ions in tetragonal Sr 2 VO 4 . The used parameters of the model Hamiltonian allow us to describe well the excitation spectra observed in neutron scattering and optical experiments at low temperatures. The free energy exhibits a minimum which corresponds to a novel alternating spin-orbital order with strong thermal fluctuation of the orbital mixing parameter. In many transition-metal compounds the orbital degrees of freedom play a decisive role in determining the groundstate properties of materials such as manganites, titanates, or vanadates. 1 When contributions of the orbital moment and spin-orbit coupling are not negligible, a separation between spin and orbital degrees of freedom is not adequate anymore and the system is better described by an effective total angular momentum. 2,3 If spin-orbit coupling competes with electron-phonon or exchange interactions even strong fluctuation regimes can arise. [4][5][6] The system investigated here is the layered insulator Sr 2 VO 4 with tetragonal symmetry, which early on has come into focus as an isostructural d 1 analog of La 2 CuO 4 . 7 Consequently, it was suggested that Sr 2 VO 4 could become superconducting upon applying chemical pressure by doping or external pressure. 8,9 While the system could not be driven toward superconductivity, it turned out to be a model system for studying the interplay of orbital-lattice, spin-orbital, and superexchange interactions. [10][11][12][13] In tetragonal Sr 2 VO 4 with space group I 4 /mmm, 14,15 the octahedrally coordinated V 4+ ions occupy a square lattice in the ab plane (see Fig. 1). The magnetic ground state has been claimed to be antiferromagnetic with transition temperatures in the range 10-100 K determined from susceptibility measurements, but long-range order has remained evasive on the basis of neutron-diffraction studies. 14,16,17 Recent studies have established the occurrence of a magnetostructural phase transition extending over a temperature range from 94 K to 122 K. Both the high-temperature and the low-temperature structure are tetragonal and reportedly coexist within this range. 11 Specific heat data have revealed two distinct broad maxima occurring at 98 K and 127 K mirroring the borders of the two-phase regime. 18,19 The disappearance of the high-temperature phase is accompanied by a significant drop in the susceptibility at about 100 K, which has been attributed to the onset of long-range antiferromagnetic (AFM) and orbital order. 11 Theoretically, the ground state of Sr 2 VO 4 has been interpreted in terms of stripelike orbital and collinear AFM spin order 10 or an ordering of magnetic octupoles. 12 Inelastic neutron scattering has revealed two excitations at about 120 meV, which have been assigned to the highest lying doublet of the V 4+ t 2g levels. 13 Recent optical experiments have reported excitations at 31 ...