Arctic habitats at the interface between land and sea are particularly vulnerable to climate change. The northern Teshekpuk Lake Special Area (N-TLSA), a coastal plain ecosystem along the Beaufort Sea in northern Alaska, provides habitat for migratory waterbirds, caribou, and potentially, denning polar bears. The 60-km coastline of N-TLSA is experiencing increasing rates of coastline erosion and storm surge flooding far inland resulting in lake drainage and conversion of freshwater lakes to estuaries. These physical mechanisms are affecting upland tundra as well. To better understand how these processes are affecting habitat, we analyzed long-term observational records coupled with recent short-term monitoring. Nearly the entire coastline has accelerating rates of erosion ranging from 6 m/year from 1955 to 1979 and most recently peaking at 17 m/year from 2007 to 2009, yet an intensive monitoring site along a higher bluff (3–6 masl) suggested high interannual variability. The frequency and magnitude of storm events appears to be increasing along this coastline and these patterns correspond to a greater number of lake tapping and flooding events since 2000. For the entire N-TLSA, we estimate that 6% of the landscape consists of salt-burned tundra, while 41% is prone to storm surge flooding. This offset may indicate the relative frequency of low-magnitude flood events along the coastal fringe. Monitoring of coastline lakes confirms that moderate westerly storms create extensive flooding, while easterly storms have negligible effects on lakes and low-lying tundra. This study of two interacting physical mechanisms, coastal erosion and storm surge flooding, provides an important example of the complexities and data needs for predicting habitat change and biological responses along Arctic land–ocean interfaces.