Substantial palsa degradation has occurred in Fennoscandia, which is considered to be driven by global climate change. Deeper understanding of the role of different climatic drivers on palsa decay, however, is lacking. We use meteorological data and aerial photographs from 1955 to 2016 to statistically identify the most important climatic drivers affecting changes in lateral-temporal palsa decay rates in the largest coherent palsa complex in Sweden, Vissátvuopmi. We show that wetter, warmer and shorter winters are the main causes of large and rapid changes in lateral-palsa extent since the mid-1950s. By analyzing meteorological data from the 1880s to present, we show that average annual temperature conditions have been unfavourable for palsas for more than a century and average annual precipitation conditions have been unfavourable since the 1940s. The decay rates have likely been amplified over the past 50-60 years, and in particular over the most recent decades, due to the combined effect of adverse air temperature and precipitation conditions. Palsa loss is expected to continue, most likely at a higher rate than today, with serious ecological impacts as a consequence.