The main mineral composition of Dahua nephrite is microcrystalline tremolite, and other minor minerals include calcite, diopside, apatite, quartz, chlorite, serpentine, talc, garnet and limonite. This study employed such means as orthogonal polarization microscope, electron microprobe analysis, X-ray powder diffraction and infrared spectrometer. The hardness, density, refractive index, compressive strength, tensile strength and toughness of the Dahua nephrite were determined. It is shown that the genetic type of the deposit belongs to stratabound and contact metasomatic type magmatic hydrothermal deposit, as shown by REE, hydrogen, oxygen and silicon isotope analysis. The mineralization age is 260 million years, as revealed by U-Pb zircon dating of diabase.