The emerging picture of prehistoric Arabia suggests that early modern humans were able to survive periodic hyperarid oscillations by contracting into environmental refugia around the coastal margins of the peninsula. This paper reviews new paleoenvironmental, archaeological, and genetic evidence from the Arabian Peninsula and southern Iran to explore the possibility of a demographic refugium dubbed the "Gulf Oasis," which is posited to have been a vitally significant zone for populations residing in southwest Asia during the Late Pleistocene and Early Holocene. These data are used to assess the role of this large oasis, which, before being submerged beneath the waters of the Indian Ocean, was well watered by the Tigris, Euphrates, Karun, and Wadi Batin rivers as well as subterranean aquifers flowing beneath the Arabian subcontinent. Inverse to the amount of annual precipitation falling across the interior, reduced sea levels periodically exposed large portions of the Arabo-Persian Gulf, equal at times to the size of Great Britain. Therefore, when the hinterlands were desiccated, populations could have contracted into the Gulf Oasis to exploit its freshwater springs and rivers. This dynamic relationship between environmental amelioration/desiccation and marine transgression/regression is thought to have driven demographic exchange into and out of this zone over the course of the Late Pleistocene and Early Holocene, as well as having played an important role in shaping the cultural evolution of local human populations during that interval.