Recent observed climate trends result from a combination of external radiative forcing and internally generated variability. To better contextualize these trends and forecast future ones, it is necessary to properly model the spatiotemporal properties of the internal variability. Here, a statistical model is developed for terrestrial temperature and precipitation, and global sea level pressure, based upon monthly gridded observational datasets that span 1921–2014. The model is used to generate a synthetic ensemble, each member of which has a unique sequence of internal variability but with statistical properties similar to the observational record. This synthetic ensemble is combined with estimates of the externally forced response from climate models to produce an observational large ensemble (OBS-LE). The 1000 members of the OBS-LE display considerable diversity in their 50-yr regional climate trends, indicative of the importance of internal variability on multidecadal time scales. For example, unforced atmospheric circulation trends associated with the northern annular mode can induce winter temperature trends over Eurasia that are comparable in magnitude to the forced trend over the past 50 years. Similarly, the contribution of internal variability to winter precipitation trends is large across most of the globe, leading to substantial regional uncertainties in the amplitude and, in some cases, the sign of the 50-yr trend. The OBS-LE provides a real-world counterpart to initial-condition model ensembles. The approach could be expanded to using paleo-proxy data to simulate longer-term variability.