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The Pantanal region in South America is one of the worlds largest wetlands. Since 2019, the Pantanal has suffered a prolonged drought that has spelled disaster for the region, and subsequent fires have engulfed hundreds of thousands of hectares, and this situation has worsened in 2021. The lack of rainfall which affected the region during the summers of 2019, 2020 and 2021 was caused by a dual effect, namely I) the reduced transport of warm and humid summer air from Amazonia into the Pantanal; and II) the predominance of warmer and drier air masses from subtropical latitudes, which contributed to a scarcity of summer rainfall at the peak of the monsoon season. This led to prolonged extreme drought conditions across the region which had severe impacts on the hydrology of the Pantanal. Hydrometric levels fell significantly in 2020 all along the Paraguay River and have not yet recovered. In addition, three intense heat waves struck the region in spring 2020 resulting in record-breaking daily maximum temperatures in several locations in central South America. Several localities reported maximum temperatures above 40 ºC for several days in a row, and temperature anomalies of 10 ºC. This sequence of heat waves aggravated the drought over the Pantanal and nearby regions (including Bolivia). Overall, this superposition of major heat waves and intense droughtncreased dramatically the number of large wildfires, with serious impacts on the ecosystems and socioeconomic activities in the area. Due to these compound dry and hot conditions, fires spread and affected natural biodiversity as well as the agribusiness and cattle ranching sectors. Based on satellite data from MODIS we conclude that the total burned area in Pantanal in 2020 has increased by 376% when compared to the average of 2003-2019, and 43% of the area affected in 2020 had not been burnt previously in 2003-2019. The area affected by fire in the Brazilian Pantanal at the end of September 2021 (1,089,975ha) is very above the historical average (616,125 ha). However, differently from 2020, when fires reached the northern part of Pantanal, in 2021 the most critical region affected was the southern part. It should be stressed that, despite the level of dryness and high temperature observed recently, these last three years do not represent an outlier but more the culmination of highly significant trends towards a much drier and hotter climate. This vicious cycle of drought and extreme heath is consistent with what is expected under a warming climate, with higher risks of fire and water crises in the region.