The Middle Pleistocene Reinsdorf sequence at the Lower Palaeolithic sites of Schöningen offers the opportunity to reconstruct a rarely well‐preserved post‐Holsteinian environmental transition from an interglacial into a glacial phase along with its highly dynamic interjacent climatic oscillations. Combining biological proxies, element composition and stable isotope ratios of two lakeshore sequences at excavation site 13 II, we demonstrate repeated variations in climate, hydrology and catchment vegetation cover. New ostracod‐based quantitative mean summer and winter air temperature reconstructions with the Mutual Ostracod Temperature Range (MOTR) method provide the first detailed information about the temperature evolution. The interglacial temperature maximum, probably corresponding to Marine Isotope Stage 9e, is followed by a first dry phase and, during the younger part of the Reinsdorf sequence, by a second dry period. Both were marked by lower precipitation/evaporation ratios, reduced vegetation cover in the catchment and increased surface inflows from springs. Temperature reconstructions of these two steppe (open woodland) phases yield very narrow ranges for mean January (−4–0 °C) and July (+17–19 or +17–21 °C) air temperatures, demonstrating that, while summers were similar to those of today, winters were at least 1 °C colder, hinting at a more pronounced continental climate. Precise temperature estimates for the interjacent woodland and steppe (woodland) phase are hindered by generally wider ranges produced by the MOTR method (January mean −4–3 °C, July mean +15–21 °C). The development of a more extensive vegetation cover, reducing surface runoff and erosion in favour of increased river and groundwater discharge, as indicated by a shift in microfossil and stable isotope records, suggests generally more humid climates with higher precipitation/evaporation ratios as well as reduced seasonal temperature variations.