Although much of the endemic biodiversity of Madagascar can be attributed to its isolation as an island in the Indian Ocean, the high rates of speciation throughout its geologic history suggest an influence of local-scale landscape dynamics. The topographic evolution of Madagascar is dominated by the formation of high-relief continental rift escarpment and we argue that the erosion and landward retreat of this topography creates habitat heterogeneity that has served as a speciation pump for the island. The highest plant richness is found along the escarpment and is characterized by steady diversification rates over the last 45 Ma. Modeled landscape evolution by escarpment retreat demonstrates opportunities for allopatric speciation by transient habitat fragmentation through multiple mechanisms, including catchment expansion, isolation of highland remnants and formation of topographic and river barriers The segregation of floral phylogenetic turnover parallel to the escarpment is consistent with these mechanisms and indicates the importance of erosion-driven landscape dynamics on speciation.