A palynological study is presented of the open-marine Upper Muschelkalk from the SW Germanic Basin, a succession dominated by lagoonal fine-grained carbonates and terrigenous mudstones. The abundance and taxonomic composition of the marine and terrigenous palynomorphs shows a phase of strong terrigenous input, which interrupted the open-marine evolution. This suggests an important regression during latest Anisian (late Illyrian) to early Ladinian (Fassanian) time, which is approximately coeval with a strong regression in other parts of this basin. The documented sea-level lowstand probably has a strong eustatic component, which was overprinted by the regional tectonics in the Germanic Basin.