We propose a model of the geodynamic evolution of the Dzhida island-arc system of the Paleoasian Ocean margin which records transformation of an oceanic basin into an accretion-collision orogenic belt. The system includes several Vendian-Paleozoic complexes that represent a mature oceanic island arc with an accretionary prism, oceanic islands, marginal and remnant seas, and Early Ordovician collisional granitoids. We have revealed a number of subunits (sedimentary sequences and igneous complexes) in the complexes and reconstructed their geodynamic settings. The tectonic evolution of the Dzhida island-arc system comprises five stages: (1) ocean opening (Late Riphean); (2) subduction and initiation of an island arc (Vendian-Early Cambrian); (3) subduction and development of a mature island arc (Middle-Late Cambrian); (4) accretion and formation of local collision zones and remnant basins (Early Ordovician-Devonian); and (5) postcollisional strike-slip faulting (Carboniferous-Permian).