A method for multiscale parameter estimation with application to reservoir history matching is presented. Starting from a given fine-scale model, coarser models are generated using a global upscaling technique where the coarse models are tuned to match the solution of the fine model. Conditioning to dynamic data is done by history-matching the coarse model. Using consistently the same resolution both for the forward and inverse problems, this model is successively refined using a combination of downscaling and history matching until model-matching dynamic data are obtained at the finest scale. Large-scale corrections are obtained using fast models, which, combined with a downscaling procedure, provide a better initial model for the final adjustment on the fine scale. The result is thus a series of models with different resolution, all matching history as good as possible with this grid. Numerical examples show that this method may significantly reduce the computational effort and/or improve the quality of the solution when achieving a fine-scale match as compared to history-matching directly on the fine scale.