Geological characteristics of Lushan area and features of Bingmagou Formation as well as the crustal evolution process are discussed in this paper. Based on the correlation of Bingmagou Formation strata distributed in Jiyuan, Yichuan, Lushan and Wugang areas, the authors hold that there existed the paleogeographic framework that the land lay in the north and the sea lay in the south during the deposition of Bingmagou Formation. Bingmagou Formation is an independent stratigraphic unit, thus it has important significance in perfecting the stratigraphic time scale of North China and even China.