Medicine Lake is in the caldera of the volcano, which measures . The caldera may have formed by collapse after a large volume of andesite was erupted from vents along the caldera rim. The distribution of late Pleistocene vents, mostly concentrated along the rim, suggests that ring faults already existed when most of the andesite erupted. No single large eruption has been related to caldera formation. The only eruption recognized to have produced ash flow tuff occurred in late Pleistocene time, and this eruption was too small to account for formation of the caldera. Later conclusions were that Medicine Lake caldera formed by collapse in response to repeated extrusions of mostly mafic lava beginning early in the history of the volcano (perhaps in a manner similar to the formation of Kilauea caldera in Hawaii). Several small differentiated magma bodies may have been fed by and interspersed among a plexus of dikes and sills. Late Holocene andesitic to rhyolitic lavas were derived by fractionation, assimilation, and mixing from high alumina basalt parental magma. The small lake from which Medicine Lake volcano derives its name lies within the central caldera.