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Understanding how populations respond to increasingly variable conditions is a major objective for natural resource managers forecasting extinction risk. The lesson from current modelling is clear: increasing environmental variability increases population abundance variability. We show that this paradigm fails to describe a broad class of empirically observed dynamics, namely endogenously driven population cycles. In contrast to the dominant paradigm, these populations can exhibit reduced long-run population variance under increasing environmental variability. We provide evidence for a mechanistic explanation of this phenomenon that relies on how stochasticity interacts with long transient dynamics present in the deterministic cycling model. This interaction stands in contrast to the often assumed additivity of stochastic and deterministic drivers of population fluctuations. We show evidence for the phenomenon in two cyclical populations: flour beetles and Canadian lynx. We quantify the impact of the phenomenon with new theory that partitions the effects of nonlinear dynamics and stochastic variation on dynamical systems. In both empirical examples, the partitioning shows that the interaction between deterministic and stochastic dynamics reduces the variance in population size. Our results highlight that previous predictions about extinction under environmental variability may prove inadequate to understand the effects of climate change in some populations.