Based on measured geological profile and experiments including thin-section, grain size analysis and cathodeluminescence in Liushan Basin, the characteristics of sedimentation and tectonic environment are investigated, by studying sedimentary facies firstly and combining sedimentary processes with tectonism tightly. The studies indicated that the sedimentary facies of Upper Triassic series in Liushan Basin was mainly fan delta, retrogradational fan deltas at first and then progradational fan deltas. Evolution of sedimentary facies and analysis of provenance indicate synthetically that Liushan Basin is an isolated basin, the sediments mainly come from the orogenic belt surrounded the basin.