The facies variations in the Middle Jurassic deposits of northern Iran (northeastern Neotethys) were studied in two stratigraphic sections (Tapal and Kalariz) in the eastern part of the Alborz Basin to reconstruct the palaeoenvironmental evolution in this region. Six different palaeoenvironments were recognized based on alternation of sedimentary facies in the four formations of the studied sections (upper part of the Fillzamin, Dansirit, Dalichai and lower part of the Lar formations). The upper Fillzamin Formation (lower Bajocian) records a gradual shallowing-upward sequence from seaward to landward margin of a prodelta environment in the study area. This shallowing trend terminated with the Mid-Cimmerian tectonic event and unconformity, which is characterized by a thin limonite layer at the base of the Dansirit Formation in the Tapal section. The Dansirit Formation (lower upper Bajocian) represents heterolithic marginal marine, sand and gravel bars and terrestrial environments. The subsequent deposits of the Dalichai Formation (upper Bajocian–Callovian) represent a deepening sequence, which is associated with the appearance of pelagic strata and ammonitico rosso facies in the upper part of the formation. The ammonitico rosso facies, which is related to the development of pelagic swells in the rift basin, gives direct evidence of an extension phase and presence of a swell/trough system in the region. The rifting and subsidence are attributed to the opening of the South Caspian Basin (north of the Alborz region). The lack of correlation between the sea-level changes recorded by the upper Bajocian strata of the sections and the long-term eustatic sea-level changes suggest tectonic influence on the facies variations and sea-level fluctuations in the Alborz region. From the upper Bajocian upwards, a deepening trend in the studied sections can be correlated with the global sea-level changes, while tectonic (rifting and subsidence) overprinted the eustatic sea-level rise.