AbstractProglacial lakes, whose numbers have been growing around the world, may drive accelerated glacier retreat and provide valuable records of past glacier and climatic changes. Despite their importance, few studies have investigated the sedimentary properties and processes acting within large proglacial lakes. Lago Argentino (LArg) is a 1,500 km2 ice‐contact lake on the eastern flank of the Southern Patagonian Icefield. Here, we describe the results from a detailed analysis of 47 sediment cores obtained throughout this lake basin, supplemented with remotely sensed data. We show that: (a) LArg exhibits a seasonal variation in sediment properties (varves); (b) varve formation results from three distinct processes, driven by seasonal changes in glacial sediment input, seasonal changes in fluvial sediment input, and seasonal variations in lake mixing; and (c) distance from glacier calving fronts provides the first‐order control on sediment grain size and accumulation rate. Our findings highlight the exceptional preservation of annual laminations within proglacial lakes, their potential for reconstructing past glacier changes, and their relevance for forecasting future glacier–lake interactions.