The Lhasa terrane was formed from the North and South Lhasa terranes, which were at first separated by the Paleo-Tethys Ocean, and were joined in a suture zone in the Late Paleozoic. The Paleo-Tethys Ocean that separated the North and South Lhasa terranes closed, and around 260 Ma in the Late Permian an HP metamorphic belt formed between the two blocks. Around 220 Ma in the Triassic an MP metamorphic belt formed. The
Tibetan Plateau was formed from a number of continental terranes that rifted from northern
Gondwana in the Paleozoic and Mesozoic, moved northward and accreted to southern Asia. The Lhasa terrane is the farthest south of these terranes. The Lhasa terrane moved northward and collided with the Qiangtang terrane along the Banggongco-Nujiang Suture. The collision began towards the end of the late
Jurassic ( Ma), and collision activity continued until the early
Late Cretaceous () Ma . During this period the terrane may have been shortened by at least . Strata from the Lower Jurassic in the Bangong suture between the Lhasa and Qiangtang terranes differ from the rocks in the Lhasa terrane and appear to have a unique source. The collision with the Qiangtang terrane caused a peripheral
foreland basin to form in the north part of the Lhasa terrane, which persisted into the Early Cretaceous. In some parts of the foreland basin the north-dipping
subduction of the Neotethyan oceanic crust below the Lhasa terrane caused volcanism. The
Gangdese volcanic arc was formed as this subduction continued along the southern margin of the Lhasa terrane. The Gangdese batholith intrudes the southern half of the Lhasa terrain. There is evidence that by the end of the Cretaceous the Southern Tibet crust was approximately twice as thick as normal.
Clastic sediments found in the terrane were deposited in shallow waters during the
Early Cretaceous ( Ma.) In northern Lhasa these sediments formed in the foreland basin created during the Lhasa–Qiangtang collision. They are overlaid by marine limestone from the Aptian-Albian period, deposited in a shallow continental seaway. The Takena formation developed in the Late Cretaceous in the foreland basin to the north of the Gangdese magmatic arc, and consists of marine limestone overlaid by fluvial red beds. Outcropped folds in the Takena formation between
Lhasa and
Yangbajain are upright or lean slightly to the north or south, and indicate 30% to 50% shortening in the Late Cretaceous before the Indian collision. ==India–Asia collision==