A large-scale thrust system was formed in Paleogene, which included Xiaochaka-Shuanghu thrust, Duoma-Qixiang Co thrust and Saibu Co-Zagya thrust in the southern Qiangtang Basin. Permian marbleized limestone and dolomite, Triassic sandstone and shale, Jurassic clastic rocks and carbonate rocks and Triassic-Jurassic ophiolite were trusted southward over Paleogene red-beds along frontier faults of each thrust, forming tectonic slices, outliers and nappes of Permian-Jurassic rocks overlying Paleogene red-beds in north, central and south Qiangtang Basin. The Paleogene thrust system played an important role in the formation and preservation of oil-gas in southern Qiangtang Basin.