The late Oligocene mammalian fauna of Quebrada Fiera is one of the most diverse of the Deseadan SALMA (South American Land Mammal Age). We describe its endemic xenarthran assemblage, represented by 13 species, consisting of 2 stem sloths and 11 armoured cingulates. The rare folivoran material confirms the presence of Octodontotherium, one of the early known mylodontids, and suggests the existence of a new, small, non-megalonychid megatherioid, Similhapalops nivis. The lumbar vertebrae of Octodontotherium sp. provide the oldest evidence of xenarthry for the order. The presence at the knee joint of an ossified meniscus and cyamo-fabella strongly suggests a plantigrade ancestral condition in Mylodontidae. Armoured xenarthrans are represented by the armadillos Eutatini (Meteutatus sp., M. lagenaformis, and Stenotatus ornatus), an undetermined Euphractinii, the 'horned' peltephilids Peltephilus sp. and P. undulatus, and the palaeopeltid Palaeopeltis inornatus; an undetermined Glyptodontidae, the glyptatelines Glyptatelus cf. tatusinus and Clypeotherium sp., and an undetermined propalaehoplophorine. The xenarthrans represent one-third of the mammals of the Quebrada Fiera fauna, one of the most varied at the end of the Palaeogene in South America. This vertebrate fauna is represented by a mix of endemic taxa and other species of high latitude (Patagonian) origin, but few from low latitude faunas. A detailed study of this mammalian assemblage, complemented by detailed geological and petrographical studies, suggests the existence of strong volcanic activity, and the presence of braided rivers and lagoonal environments in open habitats under a temperate or hot climate, with savannas and/or grasslands and isolated forests during the late Oligocene at the foot of the proto-Andes.