Sediment transport in the Erlenbach, a small stream with step-pool morphology in the canton of Schwyz, Switzerland, has been monitored for more than 20 years. During this time three exceptional events (events with high sediment yield and long return times that have a large effect on channel morphology) have impacted the stream and partly or completely rearranged the existing step-pool morphology. In the aftermath of the events, sediment transport rates at a given discharge and total sediment yield remained elevated for about a year or longer. For the last event, dated on the 20 June 2007, observations of boulder mobility and step destruction were used to interpret channel stability. Boulders with median diameters of up to 135 cm and estimated weights of more than 2·5 tons have moved during the 2007 event. Using hydraulic observations and shear stress calculations boulders up to 65 cm in diameter were predicted to have been fully mobile in peak conditions, even if form resistance and increased critical stresses needed for the initiation of motion in steep streams were taken into account. For two of the events, estimated peak shear stresses at the bed exceeded 1000 Pa, calculated both from observations of the flow hydraulics and from boulder mobility. This suggests that highly energetic flows occur relatively frequently in small, steep streams and that large boulders can be transported by fluvial processes in such streams. The observations have potential significance for hazard risk mitigation, stream engineering and restoration