X-ray photometry and optical spectra are presented covering the periastron passage of the highly-eccentric, ~50 year binary system PSR J2032+4127 in November 2017. This system consists of a 143 ms pulsar in orbit around a massive OB star, MT 91-213. The data show dramatic changes during the encounter as the pulsar wind collided with the stellar wind. The X-ray flux rose on the approach to periastron, then underwent a major dip in the few days around periastron, and then gradually declined over the next few weeks. The optical spectroscopy revealed a steady decline in the H? line strength on the approach to periastron (from an Equivalent Width of -15A to -7A) implying a truncation of the OB star's circumstellar disk by the approaching neutron star. Smooth Particle Hydrodynamic (SPH) modelling is used here to model the system within the context of the observed behaviour and predict the geometrical configuration of the circumstellar disk with respect to the pulsar's orbit.