Subfossil pine and oak tree trunks were excavated during exploitation of the Budwity peatland in Northern Poland. Based on dendrochronological analysis, the woodland successions in peatland were reconstructed and correlated with moisture dynamics of the peatland ecosystem inferred from the high-resolution multi-proxy analysis of the peatland deposits. From the results of dendrochronological analysis and the 14C wiggle matching methods, four floating pine chronologies (5882–5595; 5250–5089; 3702–3546; and 2222–1979 mod. cal BP) and two oak chronologies (4932–4599 and 4042–3726 mod. cal BP) were developed. The organic sediments of the peatland (6 m thick) were deposited over approximately nine thousand years. The lower complex (525–315 cm) comprises minerogenic peat, while the upper complex (315.0–0.0 cm) is composed of ombrogenic peat. Subfossil tree trunks are distributed across various peat horizons, which suggests multiple stages of tree colonisation followed by subsequent dying-off phases. Multiproxy sediment analyses (lithological, geochemical and δ13C stable isotope, pollen, plant macrofossils, Cladocera, diatom, and Diptera analyses) indicate that the two earliest phases of pine colonisation (5882–5595 and 5250–5089 mod. cal BP) and the two stages of oak colonisation (4932–4599 and 4042–3726 mod. cal BP) were associated with periodic drying of the peatland. Conversely, tree dying-off phases occurred during periods of increased water levels in the peatland, coinciding with stages of increasing climate humidity during the Holocene. The two most recent phases of pine colonisation occurred during the ombrogenic stage of mire development. Remnants of the dead forest from these phases, marked by subfossil trunks still rooted in the ground, were preserved and exposed presently during peat exploitation, approximately 2.5 m below ground level. The identified phases of tree colonisation and subsequent dying-off phases show correlation with analogical phenomena observed in the other investigated European peatlands.