 Olson made many inferences on the paleoecology of the Texas Red beds and the role of Dimetrodon within its ecosystem. He proposed several main types of ecosystems in which the earliest tetrapods lived. Dimetrodon belonged to the most primitive ecosystem, which developed from aquatic food webs. In it, aquatic plants were the primary producers and were largely fed upon by fish and aquatic invertebrates. Most land vertebrates fed on these aquatic primary consumers. Dimetrodon was probably the top predator of the Red Beds ecosystem, feeding on a variety of organisms such as the large shark Xenacanthus, the aquatic amphibians Trimerorhachis and Diplocaulus, and the terrestrial tetrapods Seymouria and Trematops. Insects are known from the Early Permian Red Beds and were probably involved to some degree in the same food web as Dimetrodon, feeding small reptiles like Captorhinus. The Red Beds assemblage also included some of the first large land-living herbivores like Edaphosaurus and Diadectes. Feeding primarily on terrestrial plants, these herbivores did not derive their energy from aquatic food webs. According to Olson, the best modern analogue for the ecosystem Dimetrodon inhabited is the Everglades. The exact lifestyle of Dimetrodon (amphibious to terrestrial) has long been controversial, but bone microanatomy supports a terrestrial lifestyle, which implies that it would have fed mostly on land, on the banks, or in very shallow water.
