The record of stream incision and terrace development in Frijoles Canyon, NM, was investigated to examine the controls on channel evolution in this region. Frijoles Canyon developed after deposition of the voluminous ignimbrites of the Tshirege Member of the Bandelier Tuff at ca. 1.22 Ma, which provides excellent temporal constraints on canyon evolution. Base level fall along the Rio Grande, the master drainage in the region, contributed to initial incision of the stream. Development of a major knickpoint in basalt near the Rio Grande, however, has effectively isolated most of the stream channel from direct effects of this base level change since the Early or Middle Pleistocene. Late Quaternary evolution of the channel has included development of strath and fill terraces that record the effects of climatic variations and local lithologic variations within the tuff on channel processes. A fill terrace, underlain by up to 13 m of coarse gravelly alluvium, records significant aggradation in the Early to Middle Holocene following a major regional climate change. Aggradation probably resulted from large increases in sediment supply in the Holocene relative to the Late Pleistocene, which was perhaps related to variations in intense summer rains. Rapid incision in the Middle to Late Holocene has stranded the underlying strath up to 21 m above the modern channel, and local rates of incision of up to 4 m/ka are more than 10 times the average rates since 1.22 Ma. Holocene incision displays great spatial variability associated with local lithologic variations, and results in a stream profile that has evolved rapidly in the last 10,000 years. The high rates of incision occur where easily eroded nonwelded tuff is exposed in the canyon bottom, whereas a more resistant vapor-phase altered tuff unit upstream has impeded incision. Incision may also have been affected by migration of knickpoints within the tuff. Paired strath terraces record periods of local base level stability and lateral erosion that were terminated by episodes of downcutting. The downcutting was probably controlled by rare high magnitude floods capable of stripping the pervasive gravel armor and exposing nonwelded tuff beneath the stream-bed. No tectonic influence on Late Quaternary terrace development or stream incision has been recognized despite Frijoles Canyon being crossed by the Pajarito fault zone, a major bounding structure of the Rio Grande Rift. Instead, climatic influences on sediment supply and flood characteristics, mediated by lithologic variations in the canyon bottom, have controlled Late Quaternary stream profile evolution.