Objective: To describe the characteristics of the dengue epidemic in Pinhalzinho, Santa Catarina, Brazil, and to investigate the effects of climate variables on Aedes aegypti mosquito infestation. Methods: This was an ecological study using data on dengue cases, hospitalizations and deaths in 2015 and 2016; in addition to climate variables and Aedes aegypti breeding grounds from 2015 to 2018. Results: In the 2015-2016 epidemic, the dengue incidence rate was 12,695.2/100,000 inhabitants. Higher incidence was registered in the female sex (13,926.4/100,000 inhabitants) and in the 50 years and over age group (17,162.0/100,000 inhabitants). Average temperature and relative humidity showed a positive relationship with increase in Aedes aegypti breeding grounds. Conclusion: Dengue incidence during the epidemic was the highest ever recorded in the country. Climate conditions must be considered when planning vector control and dengue prevention actions.