This study investigates the potential effects of historical deforestation in South America using a regional climate model driven with reanalysis data. Two different sources of data were used to quantify deforestation during the 1980s to 2010s, leading to two scenarios of forest loss: smaller but spatially continuous in scenario 1 and larger but spatially scattered in scenario 2. The model simulates a generally warmer and drier local climate following deforestation. Vegetation canopy becomes warmer due to reduced canopy evapotranspiration, and ground becomes warmer due to more radiation reaching the ground. The warming signal for surface air is weaker than for ground and vegetation, likely due to reduced surface roughness suppressing the sensible heat flux. For surface air over deforested areas, the warming signal is stronger for the nighttime minimum temperature and weaker or even becomes a cooling signal for the daytime maximum temperature, due to the strong radiative effects of albedo at midday, which reduces the diurnal amplitude of temperature. The drying signals over deforested areas include lower atmospheric humidity, less precipitation, and drier soil. The model identifies the La Plata basin as a region remotely influenced by deforestation, where a simulated increase of precipitation leads to wetter soil, higher ET, and a strong surface cooling. Over both deforested and remote areas, the deforestation-induced surface climate changes are much stronger in scenario 2 than scenario 1; coarse-resolution data and models (such as in scenario 1) cannot represent the detailed spatial structure of deforestation and underestimate its impact on local and regional climates.