Ludfordian strata exposed in the Burgen outlier in eastern Gotland record a time of faunal recovery after a global environmental perturbation manifested in a rapid regression attributed to glacial eustasy. The event is also reflected in the Ludfordian Carbon Isotope Excursion (LCIE), which reached the highest known values in the Phanerozoic. Conodont and vertebrate microfossils in the collection of the late Lennart Jeppsson, hosted at the Swedish Museum of Natural History, Stockholm, hold the key to reconstruct the dynamics of faunal immigration and diversification following the LCIE, but the age of these strata has been debated. Here we revise the conodont and fish fauna in the Jeppsson collection and characterize key outcrops of Burgen and Kapellet to establish their stratigraphic position and depositional environment. They represent back-shoal facies of the Burgsvik Oolite Member and correspond to the Ozarkodina snajdri Biozone. The shallow-marine position compared to the more continental setting of coeval strata in southern Gotland, is reflected in the higher δ13Ccarb values, reaching +9.2‰ at Burgen 9. The back-shoal succession in this outcrop includes diverse metazoan reefs, which indicate a complete recovery of the carbonate producers following the Lau event, compared with the impoverished and microbially-dominated strata of the underlying Eke Formation. In the case of conodonts, previously reported impoverishment following the LCIE might in Gotland be a product of facies preferences, as the diverse environments in the outlier yielded at least 20 of the 21 species known from the Burgsvik Formation. The fish diversity also returned to normal levels following the LCIE with a minimum of 9 species. However, the thelodont scales appear to dominate samples from the Burgen outlier, which is in line with previous reports.