Twenty‐five years ago, it was suggested that current‐day New Zealand, part of the largely sunken continent of Zealandia, could have been completely inundated during the Oligocene marine transgression (OMT) some 25–23 million years ago. Such an event would, of necessity, imply that all terrestrial, freshwater, and maybe coastal marine species must have dispersed there since. This idea has generated heated debate, on which geological, palaeontological and molecular data are being brought to bear. Here, we review the phylogeographic literature in the form of molecular estimates of divergence times between New Zealand lineages and their closest overseas sister groups. Using an event‐based approach, we show that these divergence times follow approximately a smooth exponential over the last 50 Ma or more. Approximately 74 of these 248 lineages appear to have survived the OMT in situ; some of these major lineages comprise multiple additional lineages as a result of autochthonous speciation prior to the OMT. Non‐volant terrestrial animals, freshwater animals and trees are particularly well represented in surviving lineages, whereas marine animals, herbs and shrubs tend to show more recent arrival times. There is no evidence for a deficit of pre‐Oligocene lineages, nor an excess of ones arriving just afterwards. The pattern is one of geometric increase in new lineages with more recent time, reflecting a balance between immigration and extinction. Consequently, this large body of molecular data provides no evidence for complete inundation of New Zealand during the Oligocene. In conjunction with new geological and palaeontological findings, these data suggest that it is time to put the idea to rest.