Alpine permafrost is particularly sensitive to climate change, since it’s temperature is often close to the melting point of ice. In summer 1987, several hundred debris flows caused considerable damage and several victims in the Swiss Alps. Analysis showed that one out of three debris flows started at the lower boundary of mountain permafrost. A 58m deep borehole through creeping permafrost was drilled in 1987 near Piz Corvatsch (Upper Engadine, Swiss Alps). Temperatures have been measured regularly since then. Comparisons of two permafrost boreholes some 20km apart, where temperatures were measured once a year, indicated at least the regional character of the signal. Between 1987 and 1994, the uppermost 25m warmed rapidly. Surface temperature is estimated to have increased from −3.3°C (1988) to −2.3°C (1994), thereby probably exceeding previous peak temperatures during the 20th century. In the two-year period from 1994 to 1996, when winter snowfall was low, intensive cooling of the ground occurred, the temperatures reaching values similar to those in 1987. Since 1996, permafrost temperatures have once again been raising, followed by a cooling last winter. The variability of the observed permafrost temperatures is caused by several processes, including: (1) a reduced period of negative temperatures within the active layer due to long-lasting zero-curtains in autumn; (2) global radiation and air temperature changes influencing ground temperatures mainly in summer; and (3) variations in the duration of winter snow-cover. If the observed warming trend in alpine mountain permafrost temperatures continues into the foreseeable future, widespread permafrost degradation is likely, with potentially serious consequences with regard to mountain slope instability.