According to the ideal despotic distribution (IDD), dominant individuals gain a fitness advantage by acquiring territories that are of higher quality, thereby forcing other individuals into lower quality habitat. In contrast, the ideal free distribution (IFD) predicts that local density is a function of habitat quality, but that individuals achieve the same fitness in different habitat types as a result of density-dependent variation in territory size. Although the IFD represents an alternative, population dynamics of territorial species are generally expected to be driven by an IDD. We tested the predictions of IFD and IDD by monitoring the demographic response of the Ovenbird (Seiurus aurocapilla) to selection harvesting (30– 40% tree removal) during the first five years postharvest in five pairs of 25-ha study plots, each comprising a control (undisturbed) and a treatment (harvested plot). In the first year following harvesting, Ovenbird territory size increased in treatment plots relative to controls, whereas density, productivity per unit area, and the abundance of litter invertebrates decreased. Treatment effects declined consistently as stands regenerated, and most effects were no longer significant by the fifth year postharvest. However, there was no treatment effect on daily nest survival rate nor on per capita productivity. These results are consistent with the IFD, whereby similar per capita productivity is achieved across habitat types through density adjustments facilitated by changes in territory size. To our knowledge, this is the first study providing evidence for an IFD in a territorial bird species.