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Pollen analysis of a 48 m AMS radiocarbon-dated sediment sequence from the Guadiana estuary provides the first record of Lateglacial and Holocene vegetation history in the Algarve province of Portugal. This paper focuses on the record of terrestrial pollen taxa, which document a series of forest expansions and declines during the period 13 000 cal. BP to 1600 cal. BP and provide insights into climate evolution in southwestern Iberia. The main vegetation phases identified in the Guadiana valley are (1) Lateglacial interstadial (Allerød) forest with Quercus and Pinus under a temperate, moist, continental climate; (2) a Younger Dryas forest decline (Quercus) and expansion of pinewoods, xeric scrub and open ground habitats (with Juniperus, Artemisia, Ephedra distachya type, Centaurea scabiosa type) under arid and cold conditions; (3) an early Holocene forest/scrub/open-ground vegetation mosaic developing under a warm, dry and continental climate; (4) a maximum of Quercus forest and thermomediterranean evergreen taxa (Olea, Phillyrea, Pistacia) reflecting a warm, moist oceanic climate between c. 9000 cal. BP and c. 5000 cal. BP; and (5) the expansion of shrublands with Cistaceae and Ericaceae under a drier climatic regime and increasing anthropogenic activity since c. 5000 cal. BP. Holocene episodes of maximum climatic aridity are identified in the record of xerophytic taxa (Juniperus, Artemisia, Ephedra distachya type) centred around 10 200 cal. BP, 7800 cal. BP, 4800 cal. BP, 3100 cal. BP and 1700 cal. BP. Regional comparisons suggest a correlation of arid phases across southern Iberia and northwest Africa, which can be related to abrupt North Atlantic coolings (Bond events). [ABSTRACT FROM AUTHOR]