ABSTRACT Life on Earth has experienced numerous upheavals over its approximately 4 billion year history. In previous work, we have discussed how interruptions to stability lead, on average, to increases in habitability over time, a tendency we called entropic Gaia. Here, we continue this exploration, working with the Tangled Nature Model of co-evolution, to understand how the evolutionary history of life is shaped by periods of acute environmental stress. We find that while these periods of stress pose a risk of complete extinction, they also create opportunities for evolutionary exploration which would otherwise be impossible, leading to more populous and stable states among the survivors than in alternative histories without a stress period. We also study how the duration, repetition and number of refugia into which life escapes during the perturbation affects the final outcome. The model results are discussed in relation to both Earth history and the search for alien life.