Abstract Disease can be a powerful driver of population and community dynamics, as well as evolutionary processes. Disease is also emerging at increasing rates, resulting in massive impacts on populations, communities, and ecosystems. However, assessing these impacts requires foundational knowledge of disease agents and hosts, which is often lacking, particularly in aquatic insects. We describe a recent disease outbreak in caddisflies, suggesting potential consequences for population and community dynamics of the host. We use a series of complementary studies to develop a cohesive foundation of information about this disease, including identification using genomic methods, observational prevalence studies, laboratory experiments to establish transmissibility and fitness consequences, and laboratory and field investigations to infer transmission mechanisms. We identified the infection as being caused by the oomycete Saprolegnia—the first time this parasite has been noted in insect eggs. Prevalence surveys found high prevalence (up to 36%) with variation across space, time, and host species. We demonstrated increasing egg mortality with increasing infection within an egg mass (every 10% increase in infection rate doubles odds of mortality), thereby confirming disease. We established transmissibility and show that transmission occurs through both direct contact with infected egg masses and from background sources, which probably interact to create complex patterns of disease. Taken together, our findings show that conditions necessary for population and community consequences are present. Specifically, increased mortality rates almost certainly occurred during the outbreak, yielding lower larval numbers and potentially altering community interactions. Transmission by contact between egg masses combined with observed species‐specific prevalence suggest shifts in the relative performance of different species because of interactions between host and parasite life histories. Outside extreme examples such as chytrid fungus, disease has traditionally received less interest than resource competition or predation in community ecology, although disease ecology is advancing rapidly. One major hurdle is a lack of foundational knowledge characterising disease processes in natural communities, particularly in aquatic insects. Our findings highlight the importance of investigating diseases in insect eggs and provide the foundation for further investigations of how these processes play out at the population and community scale.