Beaver dams in streams are generally considered to increase bed elevation through in-channel sediment storage, thus, reintroductions of beaver are increasingly employed as a restoration tool to repair incised stream channels. Here we consider hydrologic and geomorphic characteristics of the study stream in relation to in-channel sediment storage promoted by beaver dams. We also document the persistence of sediment in the channel following breaching of dams. Nine reaches, containing 46 cross-sections, were investigated on Odell Creek at Red Rock Lakes National Wildlife Refuge, Centennial Valley, Montana. Odell Creek has a snowmelt-dominated hydrograph and peak flows between 2 and 10m3s−1. Odell Creek flows down a fluvial fan with a decreasing gradient (0.018–0.004), but is confined between terraces along most of its length, and displays a mostly single-thread, variably sinuous channel. The study reaches represent the overall downstream decrease in gradient and sediment size, and include three stages of beaver damming: (1) active; (2) built and breached in the last decade; and (3) undammed. In-channel sediment characteristics and storage were investigated using pebble counts, fine-sediment depth measurements, sediment mapping and surveys of dam breaches. Upstream of dams, deposition of fine (≤2mm) sediment is promoted by reduced water surface slope, shear stress and velocity, with volumes ranging from 48 to 182m3. High flows, however, can readily transport suspended sediment over active dams. Variations in bed-sediment texture and channel morphology associated with active dams create substantial discontinuities in downstream trends and add to overall channel heterogeneity. Observations of abandoned dam sites and dam breaches revealed that most sediment stored above beaver dams is quickly evacuated following a breach. Nonetheless, dam remnants trap some sediment, promote meandering and facilitate floodplain development. Persistence of beaver dam sediment within the main channel on Odell Creek is limited by frequent breaching (<1–5years), so in-channel sediment storage because of damming has not caused measurable channel aggradation over the study period. Enhanced overbank flow by dams, however, likely increases fine-grained floodplain sedimentation and riparian habitat. Contrasts between beaver-damming impacts on Odell Creek and other stream systems of different scales suggest a high sensitivity to hydrologic, geomorphic, and environmental controls, complicating predictions of the longer-term effects of beaver restoration.