The fauna of Lucaogou formation of Middle Permian in Santanghu basin is dominated by Tomiella-Kelameilia-Panxiania combi- nation of brackish palaeoniscoid and ostracoda, which occur alternatively with the marine fossils vertically, reflecting a typical epicontinen- tal lake environment of paralic facies. The fossil plants and sporopollen assemblage reflect the features of Angara flora, representing the warm-humid climate background. The epicontinental lake environment of paralic facies enabled the diversified development and unusual flourishing of aquatic biota, thus providing material foundation for formation of premium oil source rocks of the Lncaogou formation.