A phytolith record from Monte Oscuro, a crater lake located 10 m above sea level on the Pacific coastal plain of Panama, shows that during the Late Pleistocene the lake bed was dry and savanna-like vegetation expanded at the expense of tropical deciduous forest, the modern potential vegetation. A significant reduction of precipitation below current levels was almost certainly required to effect the changes observed. Core sediment characteristics indicate that permanent inundation of the Monte Oscuro basin with water occurred at about 10,500 14C yr B.P. Pollen and phytolith records show that deciduous tropical forest expanded into the lake’s watershed during the early Holocene. Significant burning of the vegetation and increases of weedy plants at ca. 7500 to 7000 14C yr B.P. indicate disturbance, which most likely resulted from early human occupation of the seasonal tropical forest near Monte Oscuro and the development of slash-and-burn methods of cultivation.