Abstract: Through new correlation and interpretation of seismic profiles, the new idea has formed to understand the tectonic framework, formation and evolution of Qaidam Basin. It is thought that in Quaternary and Tertiary, Qaidam Basin is a superimposed basin developed under the different tectonic backgrounds.During Tertiary, the basin is mainly located in the west ofWutumeiren-Dachaidan fault zone, and inQuaternary, it is mainly situated in the east ofWutumeiren-Dachaidan fault zone. Yiliping sag belongs to the main superimposed area generated by the basin during the two periodsQuaternary and Tertiary. TertiaryQaidam Basin formed during earlyHimalayanmovement, grewduringmiddleHimalayan movement, and died out in later Himalayan movement, underwent a whole process from fault-depression, depression and reversal to uplift. In lower Tertiary, there are several depositional centers in Qaidam Basin, in Miocene and Pliocene period, the basin has a relatively uniform depositional centre, in the later period, tectonic deformation was much more strong, and faults and folds developed. The Quaternary basin, formed in later Himalayan movement, is a strike-slip basin, the depositional centre moved straight forwardly toward the east, tectonic deformation wasweak, these structures are syn-depositional ones, the amplitude is relatively small. QaidamBasin has the uniquepetroleum geologic conditions, so we must adopt the unconventional idea and method to explore for oil and gas in this basin, the big discovery could be discovered in the syncline position and structure fractures.