Key points• The state variable reveals regime-like behavior in the catchment history• The linear dynamic model has higher accuracy than conventional linear regression • The model can generate stochastic replicates of both streamflow and catchment state time series ABSTRACT Catchment dynamics is not often modeled in streamflow reconstruction studies; yet, the streamflow generation process depends on both catchment state and climatic inputs. To explicitly account for this interaction, we contribute a linear dynamic model, in which streamflow is a function of both catchment state (i.e., wet/dry) and paleo-climatic proxies. The model is learned using a novel variant of the Expectation-Maximization algorithm, and it is used with a paleo drought record-the Monsoon Asia Drought Atlas-to reconstruct 406 years of streamflow for the Ping River (northern Thailand). Results for the instrumental period show that the dynamic model has higher accuracy than conventional linear regression; all performance scores increase by 45-497%. Furthermore, the reconstructed trajectory of the state variable provides valuable insights about the catchment history-e.g., regime-like behavior-thereby complementing the information contained in the reconstructed streamflow time series. The proposed technique can replace linear regression, since it only requires information on streamflow and climatic proxies (e.g., tree-rings, drought indices); furthermore, it is capable of readily generating stochastic streamflow replicates. With a marginal increase in computational requirements, the dynamic model brings more desirable features and value to streamflow reconstructions.