Abstract Sheared peridotite xenoliths are snapshots of deformation processes that occur in the cratonic mantle shortly before their entrainment by kimberlites. The process of deformation that caused the shearing has, however, been highly debated since the 1970s and remains uncertain. To investigate the processes involved in the deformation, we have studied 12 sheared peridotites from Late Cretaceous (90 Ma) kimberlites in northern Lesotho, on the southeast margin of the Kaapvaal craton. Various deformation textures are represented, ranging from porphyroclastic to fluidal mosaic. Our sample suite consists of eleven garnet peridotites, with various amounts of clinopyroxene, and one garnet-free spinel peridotite with a small amount of clinopyroxene. All of the peridotites are depleted in Fe, and the Mg# of olivine and orthopyroxene range from 91 to 94. Three groups of sheared peridotites are present and have been identified primarily on the basis of Ca contents of olivine and orthopyroxene. The porphyroclasts preserve pre-deformation P–T conditions of 3.5 to 4.5 GPa and 900°C to 1100°C (Group I), 5 to 5.5 GPa and 1200°C to 1250°C (Group II) and 6 ± 0.5 GPa and 1400 ± 50°C (Group III). Group III samples lie above the 40 mW/m2 conductive geothermal gradient, indicating thermal perturbation prior to deformation. The sheared peridotites from Lesotho were affected by various metasomatic events. Pre-deformation metasomatism, involving melts and fluids, is recorded in the porphyroclasts. In Group II and III samples, the clinopyroxene porphyroclasts have similar compositions to Cr-rich and Cr-poor clinopyroxene megacrysts, respectively, that have previously described from southern African kimberlites. This suggests a relationship between them. Younger pre-deformation metasomatism is preserved in a zoned garnet from Group II (enrichment in Ti, Zr, Y + HREE) and orthopyroxene in a Group I sample. The latter exhibits a complex zonation, with a highly enriched (Fe, Ti) inner rim and a less-enriched outer rim. These enrichments must have occurred shortly before deformation. Metasomatism during deformation is revealed by the complex chemical changes recorded in olivine neoblasts with, depending on the sample, increasing or decreasing contents of Ti, Ca, Al, Cr, Mn and Na. Crystallographic preferred orientations of olivine neoblasts are consistent with bimodal, B, C, E, AG-type fabrics and indicate the presence of a hydrous metasomatic agent. We suggest that, akin to the shallower sheared peridotites (Group I), Groups II and III were influenced by early (proto-)kimberlite melt pulses and propose the following model: (proto-)kimberlitic melts invaded the lower lithosphere. These melts followed narrow shear zone networks, produced by deformation at the lithosphere–asthenosphere boundary, heated and metasomatized the surrounding peridotites and were responsible for megacryst crystallization. Sheared peridotites from close to the melt conduits (Group III) have compositions comparable to Cr-poor megacrysts, while those located at a greater distance (Group II) resemble Cr-rich megacrysts. Reactive infiltration of volatile-rich proto-kimberlite melts caused rheologically weakening of olivine in the lithospheric mantle. The consequence of this positive feedback mechanism of metasomatism, weakening and deformation—due to the high magmatic and metasomatic activity in the Late Cretaceous—is the progressive perforation of the lower Kaapvaal lithosphere by rheologically weak zones and the destruction of the protecting dry and depleted layer at its base. This could have caused the observed thinning and destabilization of the lower lithosphere below the southern margin of the Kaapvaal craton.