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An anomalous reduction in forest growth indices and temperature sensitivity has been detected in tree-ring width and density records from many circumpolar northern latitude sites since around the middle 20th century. This phenomenon, also known as the “divergence problem”, is expressed as an offset between warmer instrumental temperatures and their underestimation in reconstruction models based on tree rings. The divergence problem has potentially significant implications for large-scale patterns of forest growth, the development of paleoclimatic reconstructions based on tree-ring records from northern forests, and the global carbon cycle. Herein we review the current literature published on the divergence problem to date, and assess its possible causes and implications. The causes, however, are not well understood and are difficult to test due to the existence of a number of covarying environmental factors …