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Catchment dynamics is not often modeled in streamflow reconstruction studies; yet, the streamflow generation process depends on both catchment state and climatic inputs. To explicitly account for this interaction, we contribute a linear dynamic model, in which streamflow is a function of both catchment state (i.e., wet/dry) and paleoclimatic proxies. The model is learned using a novel variant of the Expectation-Maximization algorithm, and it is used with a paleo drought recordthe Monsoon Asia Drought Atlasto reconstruct 406 years of streamflow for the Ping River (northern Thailand). Results for the instrumental period show that the dynamic model has higher accuracy than conventional linear regression; all performance scores improve by 45-497%. Furthermore, the reconstructed trajectory of the state variable provides valuable insights about the catchment historye.g., regime-like behaviorthereby complementing the information contained in the reconstructed streamflow time series. The proposed technique can replace linear regression, since it only requires information on streamflow and climatic proxies (e.g., tree-rings, drought indices); furthermore, it is capable of readily generating stochastic streamflow replicates. With a marginal increase in computational requirements, the dynamic model brings more desirable features and value to streamflow reconstructions.