Wetlands in tropical wet-dry climates are governed by distinct and extreme seasonal hydrologic fluctuations. In this study, we investigated the plant community response to seasonal flooding and drought in Palo Verde Marsh, Costa Rica. Climate change models for the region predict reduced rainfall and a drier wet season which would likely alter seasonal hydrologic cycles and prompt vegetation change. We quantified compositional change following disturbance emphasizing seasonal differences in plant life-form abundance across life history stages via standing vegetation, seed bank, and seedling recruitment measurements. Whereas the dry season standing vegetation was dominated by emergent species, aquatic species (floating-rooted, free-floating, and submerged life forms) were more dominant during the wet season. Seed bank and seedling recruitment measurements indicated that many species are resilient with life history traits that enable them to respond rapidly to extreme hydrologic filters. Interestingly, species richness was highest during seasonal flooding. Our results highlight the importance of early-wet season rainfall for plant regeneration and community change. Our findings also indicate that a drier future would likely have a large impact upon wetland plant communities with a decrease in species richness and an increase in the abundance of drought-tolerant emergent species.