The River Continuum Concept (RCC) provides a conceptual framework for stream macroinvertebrate distribution based on a continuous longitudinal gradient from headwaters to large rivers. However, the characterization of rivers as continua has garnered some criticism, particularly in the context of impounded rivers. The Serial Discontinuity Concept (SDC) suggests that predictions of the RCC may be altered by impoundments, which act as disruptions to the longitudinal continuum. Because the SDC has primarily been applied to rivers impacted by artificial dams, the influences of natural beaver dams on macroinvertebrate communities are not well understood in conceptual models. Here, we investigated the effect of beaver dams on aquatic insect community structure and basal carbon resources through the beaver dam “life cycle,” from intact dam, to breach, to recovery. In six headwater streams spanning this gradient, aquatic insects were sampled in alternating reaches of forested, high-energy stream segments and low-energy, meandering stream segments with open canopies. We sampled aquatic insects using standardized active and passive methods and conducted stable isotope analysis and analysis of taxonomic and functional diversity for each site. Results show a significant difference in functional diversity between high-energy forested and low-energy beaver meadow reaches with a higher proportion of predators (77.9% vs. 44.1%) and a lower proportion of scrapers (0.05% vs. 23.5%) and shredders (0.06% vs. 12.9%) within beaver meadow reaches (df=4, X2=492.3, p=<0.001). A Bray-Curtis dendrogram suggested evidence for hierarchical clustering of genera into distinct high-energy and low-energy sections of stream. Further, results from stable isotope analyses suggest differences in food web structure between high-energy and low-energy reaches. Together, our results provide preliminary support for the SDC and highlight the impacts of beaver habitat engineering on aquatic insect communities and food webs in headwater streams.