A 415 cm thick permafrost peat section from the Verkhoyansk Mountains was radiocarbon-dated and studied using palaeobotanical and sedimentological approaches. Accumulation of organic-rich sediment commenced in a former oxbow lake, detached from a Dyanushka River meander during the Younger Dryas stadial, at ∼12.5 kyr BP. Pollen data indicate that larch trees, shrub alder and dwarf birch were abundant in the vegetation at that time. Local presence of larch during the Younger Dryas is documented by well-preserved and radiocarbon-dated needles and cones. The early Holocene pollen assemblages reveal high percentages of Artemisia pollen, suggesting the presence of steppe-like communities around the site, possibly in response to a relatively warm and dry climate ∼11.4-11.2 kyr BP. Both pollen and plant macrofossil data demonstrate that larch woods were common in the river valley. Remains of charcoal and pollen of Epilobium indicate fire events and mark a hiatus ∼11.0-8.7 kyr BP. Changes in peat properties, C31/C27 alkane ratios and radiocarbon dates suggest that two other hiatuses occurred ∼8.2-6.9 and ∼6.7-0.6 kyr BP. Prior to 0.6 kyr BP, a major fire destroyed the mire surface. The upper 60 cm of the studied section is composed of aeolian sands modified in the uppermost part by the modern soil formation. For the first time, local growth of larch during the Younger Dryas has been verified in the western foreland of the Verkhoyansk Mountains (∼170 km south of the Arctic Circle), thus increasing our understanding of the quick reforestation of northern Eurasia by the early Holocene. © 2009 The Authors, Journal compilation © 2009 The Boreas Collegium.