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• Drought in early summer mainly limited Dahurian larch growth at its southern margin. • Warming after the 1980s led to growth decline at permafrost & non-permafrost sites. • Drought in June caused intra-annual density fluctuations (IADFs) in earlywood. • Permafrost melting enhances larch growth but leads to less IADFs in boreal forests. Permafrost melting due to climate warming in recent decades has produced significant effects on forest ecosystems, especially the boreal biome at its southernmost limit in Asia. How this warming affects wood formation of trees at intra-annual resolution is unclear, yet is crucial for assessing the impact of permafrost melting on boreal forest growth. In this study, we compared the radial growth and intra-annual wood density fluctuations (IADFs) of Dahurian larch (Larix gmelinii Rupr.) at a permafrost (PF) and a non-permafrost (NPF) site at the southernmost permafrost limit in northeast China and quantified their relationships with climate factors. Drought in early summer was the main factor limiting growth of Dahurian larch. The basal area increment (BAI) of trees at both sites increased initially and then decreased in the 1980s, probably in response to warm-dry climate conditions. Earlywood IADFs (IADF-E) occurred in 14.0% and 9.3% of dated rings at the NPF and PF sites, while the frequency of latewood IADFs (IADF-L) was 6.8% and 2.7% at these two sites. The frequency of IADF-E in trees at both sites was positively and negatively related to June temperatures (and vapor pressure deficit) and precipitation, respectively, suggesting drought stress in June triggered the formation of IADF-E. The IADF-Ls were probably formed in response to warm temperatures in the late growing season. A higher BAI and a lower frequency of IADF-Es of trees at the PF site than at the NPF site indicated that permafrost melting could alleviate drought stress in early summer and promote radial growth of Dahurian larch. This greatly improved forest carbon sequestration and wood quality of some northeastern Asian boreal forests may offset to some extent the adverse effects of warming-drying climates at some sites of northeast Asia. Larch IADF-Es recorded extreme droughts in early summer, giving us a new sight for reconstructing high-frequency extreme climate events. If climate warming continues, the benefits of permafrost melting will gradually disappear and even turn negative due to warmer-dryer climate conditions. Our findings provide valuable information for boreal forest management and conservation under future global warming. [ABSTRACT FROM AUTHOR]