ICP test, SEM observation and quantitative and crystallinity analysis of mineral phases of Liyang nephrite have revealed that tremolite fiber has higher crystallinity and better orientation than Xinjiang nephrite, which might be attributed to its weaker dynamic reconstruction. Compared with geological characteristics of other nephrite deposits in China, the parent rock of the Liyang nephrite deposit has extremely abundant ALK, which is believed to be the main cause for the higher contents of ALK in Liyang nephrite. This feature is also regarded as one of the identification characteristics. Specific geological features of the Liyang deposit are responsible for petrological and mineralogical characteristics of Liyang nephrite and also account for the higher transparency and lower oil luster of Liyang nephrite.