A comprehensive investigation of the Early Jurassic stratigraphical palynology of the Lusitanian Basin in western Portugal was undertaken, with most emphasis placed on dinoflagellate cysts. A total of 214 samples from an upper Sinemurian to upper Toarcian composite section based on six successions were examined. The Sinemurian material examined was barren of dinoflagellate cysts; however, the Pliensbachian and Toarcian successions are characterised by relatively low diversities where Luehndea spinosa, Mancodinium semitabulatum, Mendicodinium microscabratum, Nannoceratopsis gracilis, Nannoceratopsis senex, and Scriniocassis priscus are relatively common and biostratigraphically significant. Luehndea spinosa dominates the lowermost Toarcian (Dactylioceras polymorphum ammonite Biozone), and is an index species. At the base of the Hildaites levisoni ammonite Biozone, the effects of the Toarcian Oceanic Anoxic Event (T-OAE) caused Luehndea spinosa to become extinct. At the same time, dinoflagellate cyst abundance and diversity markedly decreased. After the T-OAE, during the middle and late Toarcian, phytoplankton recovery was prolonged and slow in the Lusitanian Basin. The Luehndea spinosa and Mendicodinium microscabratum dinoflagellate cyst biozones are defined, both of which are subdivided into two dinoflagellate cyst subbiozones.