Kunyushan granite distributed in Muping-Rushan area of Jiaodong is a multiphasic gnessic complex intrusion. It is composed of Duoguding gneissic granodiorite (147 Ma), Bamenzhoujia gneissic porphyritic granodiorite (135 Ma), Washan-Shuidao monzonitic granite and Wuzhaoshan gneissic garnetiferous monzonitic granite (120 Ma), and is geochemically characterized by poor aluminium and rich alkali. According to our work, it was emplaced mainly in Jurassic and, instead of being formed by metasomatism, was formed by condensated crystallization from magma derived from melting of Proterozoic intermediate acid metamorphosed volcanic rocks situated in the lower middle crust or the upper part of the lower crust, as a result of sudden decrease in pressure and temperature in the pliable lower crust. The granite was formed by crystallization and later it underwent plastic and brittle deformation. The different directions of gneissosity of the intrusion resulted from plastic deformation of melt as a result of different directions of stress. Faults and shatter zones formed by brittle deformation constitute the main passageways and host structures. There is a close relation between the emplacement and deformation of granite and the ore forming process of the gold deposits. In the process of brittle deformation of the intrusion, the silica rich hydrothermal solution crystallized and the recrystallization of quartz provided the carrier (quartz veins) for the concentration of mineralized materials. The main ore forming solution was the mixture of deep source auriferous hydrothermal solution and heated circulated groundwater. It extracted gold from metamorphic rocks, granite and lamprophyre, and caused its mobilization, migration and enrichment to form gold orebodies.