The Paleocene-Eocene Thermal Maximum (PETM) global warming event at ∼56 million years before present changed catchment weathering and erosion. Increased chemical weathering of silicate minerals is thought to be an important process removing CO2 from the atmosphere. However, changes in clay mineralogy can often be explained by enhanced erosion of catchment laterites during the event. Here, we investigate chemical and physical weathering and erosive flux changes through the PETM interval in the Bighorn Basin, Wyoming, a Laramide foreland basin, in a proximal continental-interior alluvial setting. These show an increase of detrital smectite with a lag time of 20-kyr after the main onset the PETM. The smectite increase continued for at least 50-kyr after the event. In-situ, post-depositional pedogenic clay mineral formation is similar between pre-PETM and PETM soil profiles, despite large macroscopic differences between soils that formed before and during the event. Drier, hotter summers during the PETM probably caused decreased vegetation cover that, in concert with more frequent and heavier rainstorms, intensified the erosion of smectite-rich Cretaceous bentonites on the margins of the catchment, which exceeded changes in chemical weathering within the catchment. The lagged response in reaching full PETM clay mineral values can be explained by the time required for upstream sediment to reach the catchment basin floodplain. The prolonged nature of smectite enhancement after the PETM event may again relate to signal propagation times that are now even longer due to lower fluvial recycling rates. Our results indicate that chemical weathering changes were probably superceded by enhanced physical weathering and clay-mineral transport from basin margins at this continental-interior study site.