We generalize the effective field theory of single clock inflation to include dissipative effects. Working in unitary gauge we couple a set of composite operators in the effective action which is constrained solely by invariance under time-dependent spatial diffeomorphisms. We restrict ourselves to situations where the degrees of freedom responsible for dissipation do no contribute to the density perturbations at late time. The dynamics of the perturbations is then modified by the appearance of `friction' and noise terms, and assuming certain locality properties for the Green's functions of these composite operators, we show that there is a regime characterized by a large friction term \gamma >> H in which the \zeta-correlators are dominated by the noise and the power spectrum can be significantly enhanced. We also compute the three point function <\zeta\zeta\zeta> for a wide class of models and discuss under which circumstances large friction leads to an increased level of non-Gaussianities. In particular, under our assumptions, we show that strong dissipation together with the required non-linear realization of the symmetries implies |f_NL| ~ \gamma/(c_s^2H) >> 1. As a paradigmatic example we work out a variation of the `trapped inflation' scenario with local response functions and perform the matching with our effective theory. A detection of the generic type of signatures that result from incorporating dissipative effects during inflation, as we describe here, would teach us about the dynamics of the early universe and also extend the parameter space of inflationary models. Show Partial Abstract