Based on field observation and indoor integrated analysis of some 20 outcrop profiles in Lanping basin in combination with such division criteria as regional sedimentary framework and sedimentary characteristics, the authors analyzed Palaeogene sedimentary environment, sequence stratigraphic features, sedimentary facies distribution and evolutionary features. Some tentative conclusions have been reached: In Palaeogene, alluvial fan, river, delta and lacustrine environments were dominantly developed in the Lanping basin. Sedimentary facies experienced regular concerted evolution in the course of evolution: In the lowstand period, the subduction and compressive action of Indian plate towards Eurasian plate caused the formation of Lanping strike-slip pull-apart basin and the deposition of a set of confined lake basin facies red gypsum fine detrital rock formation; in the lake expansion period, the conversion of compressional stress field into pull-apart stress field resulted in the expansion of the lake basin in early Eocene and the extensive deposition of a suite of littoral shallow lucustrine facies purplish red and brick red interbeds of sandstone and mudstone, reflecting the gradual rising of the lake surface and the gradual expansion of sedimentary area; in the lake contraction period, influenced by late Eocene Himalayan movement, the basin and its periphery experienced the conversion of pull-apart stress field into intense compression, and the orogenic belts on both east and west sides jointly expanded towards the interior of the basin through napping, leading to the beginning of the differential rapid uplift of the basin and the further contraction of the basin; as a result, only a series of small-sized piedmont continental foreland basins were formed at the front of the nappe whih were later filled with continental clastic molasses sediments. Stratigraphic sequence paleographic mapping has revealed that sedimentary ore resources (evaporates) had obvious stratabound characteristics and were developed in lowstand tracts in relation to sedimentary filling features and climate of the lowstand period. This period was the basin-forming period, during which the water body of the basin was shallower than that in the lake expansion period characterized by rapid tectonic subsidence and fast rising of the lake surface, and the continental clastic material supply was less than that in the lake contraction period characterized by formation of molasses formation, thus favorable for the preservation of a large-area shallow water lacustrine environment. Besides, this period had a hot and dry climate, and hence the evaporation quantity of the water body was larger than the recharge quantity. These integrated factors resulted in the deposition of stably distributed evaporate formation in the lake basin, which, of course, causes the basin to have extremely promising vista in search for potash salt.