The role of instanton-like objects in the QCD vacuum on the mass spectrum of low-lying light hadrons is explored in lattice QCD. Using over-improved stout-link smearing, tuned to preserve instanton-like objects in the QCD vacuum, the evolution of the mass spectrum under smearing is examined. The calculation is performed using a 20 3 ×40 dynamical fat-link-irrelevant-clover (FLIC) fermion action ensemble with lattice spacing 0.126 fm. Through the consideration of a range of pion masses, the effect of the vacuum instanton content is compared at a common pion mass. While the qualitative features of ground-state hadrons are preserved on instantondominated configurations, the excitation spectrum experiences significant changes. The underlying physics revealed shows little similarity to the direct-instanton interaction predictions of the instanton liquid model.