Structural analyses, balanced cross-section restoration and tectonophysical modeling were jointly used in this study to investigate the tectonic evolution and geodynamics of the Songliao Basin. The basement of the Songliao Basin was formed prior to Jurassic by coalescing multiple microplates and tectonic terranes in the Paleo-Asian Ocean. During the Middle and Late Jurassic the basement was altered by the large scale sinistral strike-slip faulting of the northern segment of the Tancheng-Lujiang fault system, producing series of secondary NNE-, NNW- and near NS-trending faults, which exerted primary controls on the tectonic configuration of the basement and the distribution of fault depressions. The basin was inverted during the Latest Cretaceous due to episodic, NWW compression, which was possibly associated with terrane accretions as the Izanagi Plate demised and the subduction of Pacific Plate began.