The Southern Hemisphere may have provided biodiversity refugia after the Cretaceous/Palaeogene (K/Pg) mass extinction. However, few extinction and recovery studies have been conducted in the terrestrial realm using well-dated macrofossil sites that span the latest Cretaceous (late Maastrichtian) and early Palaeocene (Danian) outside western interior North America (WINA). Here, we analyse insect-feeding damage on 3,646 fossil leaves from the latest Maastrichtian and three time slices of the Danian in Chubut, Patagonia, Argentina (palaeolatitude approximately 50° S). We test the southern refugial hypothesis and the broader hypothesis that the extinction and recovery of insect herbivores, a central component of terrestrial food webs, differed substantially from WINA at locations far south of the Chicxulub impact structure in Mexico. We find greater insect-damage diversity in Patagonia than in WINA during both the Maastrichtian and Danian, indicating a previously unknown insect richness. As in WINA, the total diversity of Patagonian insect damage decreased from the Cretaceous to the Palaeocene, but recovery to pre-extinction levels occurred within approximately 4 Myr compared with approximately 9 Myr in WINA. As for WINA, there is no convincing evidence for survival of any of the diverse Cretaceous leaf miners in Patagonia, indicating a severe K/Pg extinction of host-specialized insects and no refugium. However, a striking difference from WINA is that diverse, novel leaf mines are present at all Danian sites, demonstrating a considerably more rapid recovery of specialized herbivores and terrestrial food webs. Our results support the emerging idea of large-scale geographic heterogeneity in extinction and recovery from the end-Cretaceous catastrophe.