The 2nd Member of the Guanling Formation of Middle Triassic is well exposed at the Shangshikan section, Luoping, Yunnan Province. In this paper, two 3rd order sequences (SQ1 and SQ2) and their components such as parasequences, parasequence sets, system tracts, sequence surfaces and the maximum flooding surface are recognized at the Shangshikan section based on integration of sedimentary facies analysis and paleoecologic studies. Inferred relative sea level changes include two rise-fall cycles. The exceptionally preserved marine fishes and reptiles occur in the condensed sections containing the maximum flooding in SQ1 and SQ2 when the Luoping areas were relatively deep intra-platform basins.