Across the northeastern U.S., small dams impair natural stream dynamics by interrupting flow, altering habitats, and impacting water quality. Dam removal is increasingly used to restore stream processes and improve habitats that support sensitive taxa, including benthic macroinvertebrates. Despite the growing number of dam removals, there is a lack of information on factors driving variability in biotic responses, and concerns remain regarding potential negative impacts on sensitive organisms. To better understand the timescale and extent of macroinvertebrate recovery after dam removals, we sampled macroinvertebrates within upstream, impounded, and downstream reaches in 10 streams both before (at least 1 year) and after (up to 5 years) dam removal. We collected pre- and post-removal temperature and dissolved oxygen (DO) data at the same sites to relate changes in water quality with macroinvertebrate assemblages and functional metrics. Prior to dam removal, impoundment assemblages were dominated by tolerant taxa, while upstream assemblages contained more coldwater and sensitive taxa. After dam removal, all 10 former impoundments exhibited an increase in the percent of sensitive taxa (average 13% more), although the timescale varied across sites. Channel development within the former impoundment may be relatively rapid from a geomorphic perspective, and these data suggest that sensitive macroinvertebrates can quickly (1-5 years) use newly available habitat, providing support for the re-colonization of other biota. Downstream, the percent sensitive taxa increased to meet or exceed pre-removal values within 3 years after removal at 8 sites. At a site with substantial sediment released downstream, we observed increases in macroinvertebrate densities, diversity, and percent sensitive taxa 1-3 years after removal, which may help to ease some concerns regarding perceived negative removal impacts. This information may contribute to a better understanding of the factors influencing the timeline and magnitude of macroinvertebrate recovery after dam removal and help set expectations for restoration.