1. The harlequin bug, a herbivore on bladderpod, is attacked by two specialist egg parasitoids Trissolcus murgantiae and Ooencyrtus johnsonii. Ooencyrtus can out-compete Trissolcus in the laboratory, but coexistence is the norm in field populations. Despite the heavy mortality inflicted by the two parasitoids, the host-parasitoid interaction is persistent in all sites that have been studied in southern California. 2. I manipulated inter-patch distances in a field experiment to determine whether spatial processes drive parasitoid coexistence and/or host-parasitoid dynamics. I first tested the hypothesis that the parasitoids coexist via a dispersal-competition trade-off. Both parasitoid species took significantly longer to colonize isolated patches than well-connected patches, suggesting that they have comparable dispersal abilities. Ooencyrtus did not exclude Trissolcus even when inter-patch distances were reduced to 25-30% of those observed in natural populations. These data suggest that parasitoid coexistence can occur in the absence of a dispersal advantage to the inferior competitor. 3. Since the treatments with isolated vs. well-connected patches did not differ in parasitoid composition, I next asked whether isolation would destabilize, or drive extinct, the host-multiparasitoid interaction. No local extinctions of bugs or parasitoids were observed during the 18-month study period. Bug populations in the isolated patches were no more variable than those in the well-connected patches. In fact, temporal variability in the experimentally isolated patches was comparable to that observed in highly isolated natural populations. 4. These data argue against a strong effect of spatial processes on host-parasitoid dynamics. Local processes may mediate both parasitoid coexistence as well as the host-parasitoid interaction.