The controls on basin-fill stratigraphy such as sediment supply, climate, eustasy and tectonics are well understood in many basin types, but there are few examples documented from forearc basins. Traditional evolutionary models for forearc basins emphasise the importance of accretionary processes under a largely contractional tectonic regime. The Talara Basin of northwestern Peru preserves a lower Eocene stratigraphic record of dominantly extensional collapse tectonics punctuated by periods of uplift, driven by variability of the subduction process. The margin is dominated by subduction erosion and only minor accretion processes. In this geodynamic setting, we present for the first time a sedimentological and sequence stratigraphic model for the 350 m-thick fluvio-deltaic succession of the Pariñas Formation. Three depositional sequences are stacked into a highstand sequence set comprising proximal fluvial strata that correlate down dip into marginal marine and marine deposits. Syn-sedimentary normal faulting related to episodes of subduction erosion restricted much of the Pariñas to hanging-wall locations subject to minor-scale transgressions. The succession evolved from shelf-confined clinoforms to later basin margin scale clinoforms, related to long-term sea-level rise. The interaction of eustasy, sediment supply and episodes of subduction erosion are integrated into an evolutionary model that may have application in other non-accretionary forearc basins worldwide. Although the model shares characteristics with extensional models for rift basins, the episodic subduction-driven uplift events add another component of relative sea-level complexity.