Palaeoclimate proxies have demonstrated links between climate changes and volcanic activity. However, not much is known about the impact of volcanic eruptions on forest productivity. Here we used tree-ring width and annually resolved carbon and oxygen isotopic records from tree rings of Araucaria araucana (Molina) K. Koch, providing a centennial-scale reconstruction of tree ecophysiological processes in forest stands nearby the Lonquimay Volcano (Chile). We observed a mean decrease in tree-ring width following the major eruption of 1988–1990 (with aerosol emission), most probably caused by the modified ecological conditions due to acid rain and ash deposition, while a generally negative relationship between δ13C and δ18O would point to a decline in humidity and precipitation. More negative δ13C and lower δ18O values (positive correlation) following the major eruption of 1887–1890 (without aerosol emission) would suggest high stomatal conductance and moisture availability, though tree-ring width (and probably photosynthetic rate) was unaltered. At least for this sample of trees, in the case of eruption with large tephra emission, the beneficial effect of aerosol light scattering on tree productivity appears to be outweighed by the detrimental effect of eruption-induced toxic deposition. Signals of the two major eruptions of the past 200 years at Lonquimay were present in tree rings of nearby A. araucana. No unique response of tree functions to volcanic eruptions can be expected, but rather (1) the variable volcanic properties and (2) the complex interplay of diffuse light increase (aerosol scattering), air temperature decrease (cloud shading), and toxic deposition impact (volcanic ash), makes any prediction of tree growth and ecophysiological response very challenging.