Abstract. In this article, we examine the Bramble-Pasciak-Xu (BPX) preconditioner in the setting of local 2D and 3D mesh refinement. While the available optimality results for the BPX preconditioner have been constructed primarily in the setting of uniformly refined meshes, a notable exception is the 2D result due to Dahmen and Kunoth, which established BPX optimality on meshes produced by a restricted class of local 2D red-green refinement. The purpose of this article is to extend the original 2D Dahmen-Kunoth result to several additional types of local 2D and 3D red-green (conforming) and red (non-conforming) refinement procedures. The extensions are accomplished through a 3D extension of the 2D framework in the original Dahmen-Kunoth work, by which the question of optimality is reduced to establishing that locally enriched finite element subspaces allow for the construction of a scaled basis which is formally Riesz stable. This construction in turn rests entirely on establishing a number of geometrical properties between neighboring simplices produced by the local refinement algorithms. These properties are then used to build Riesz-stable scaled bases for use in the BPX optimality framework. Since the theoretical framework supports arbitrary spatial dimension d ≥ 1, we indicate clearly which geometrical properties, established here for several 2D and 3D local refinement procedures, must be re-established to show BPX optimality for spatial dimension d ≥ 4. Finally, we also present a simple alternative optimality proof of the BPX preconditioner on quasiuniform meshes in two and three spatial dimensions, through the use of K-functionals and H sstability of L 2 -projection for s ≥ 1. The proof techniques we use are quite general; in particular, the results require no smoothness assumptions on the PDE coefficients beyond those required for well-posedness in H 1 , and the refinement procedures may produce nonconforming meshes.Key words. finite element approximation theory, multilevel preconditioning, BPX, two and three dimensions, local mesh refinement, red and red-green refinement.AMS subject classifications. 65M55, 65N55, 65N22, 65F101. Introduction. In this article, we analyze the impact of local adaptive mesh refinement on the stability of multilevel finite element spaces and on the optimality (linear space and time complexity) of multilevel preconditioners. Adaptive refinement techniques have become a crucial tool for many applications, and access to optimal or near-optimal multilevel preconditioners for locally refined mesh situations is of primary concern to computational scientists. The preconditioners which can be expected to have somewhat favorable space and time complexity in such local refinement scenarios are the hierarchical basis (HB) method, the Bramble-PasciakXu (BPX) preconditioner, and the wavelet modified (or stabilized) hierarchical basis (WHB) method. While there are optimality results for both the BPX and WHB preconditioners in the literature, these are primarily for quasiuniform meshes and/o...