The closure of the Paleo-Tethys Ocean and subsequent collisional orogenesis in the early Mesozoic played an important role in the formation of the Qinghai–Tibetan Plateau. However, the final closure of the southernmost Paleo-Tethys branching ocean basin in the Qinghai–Tibetan Plateau—known as Sumdo Paleo-Tethys Ocean—and collision between Central and Southern Lhasa terranes remain controversial. In particular, the tectonic significance of early Mesozoic volcanism and sedimentation in the Lhasa terrane is unknown, but crucial for understanding the final stages of ocean closure. Here, we investigate the depositional ages and provenance of detrital zircon in clastic sedimentary rocks, as well as the petrogenesis of the interbedded andesite from the volcano-sedimentary sequence of the Late Triassic to Early Jurassic Xionglai Formation in the Tangjia-Sumdo area. Detrital zircon dates from the Xionglai Formation define five age peaks at 180–200 Ma, 230–340 Ma, 500–620 Ma, 1000–1240 Ma, and 1600–1800 Ma. Detrital zircon trace elements and Hf isotopic characteristics are interpreted to represent derivation from an accretionary wedge and later magmatism related to oceanic slab break-off as well as a minor component from coeval magmatic rocks in the Nyainrong-Nang area in northern Lhasa terrane. Interbedded andesite has a magnesian andesite signature and yields ages of 192–184 Ma with zircon εHf(t) values that range from −3 to +1. We interpret these data as the andesite being sourced from sediment-derived melts that interacted with the overlying mantle wedge in a post-collision extensional setting. Our study suggests that the closure of the Sumdo Paleo-Tethys Ocean and subsequent collision between Central Lhasa and Southern Lhasa terrane may have happened in Late Triassic-Early Jurassic. The final closure of the multi-Paleo-Tethys Ocean and subsequent collision in the Qinghai–Tibetan Plateau may have induced initial subduction of the Meso-/Neo-Tethys Ocean, representing the tectonic transition from collision/post-collision to subduction/accretion in the Qinghai–Tibetan Plateau during the Late Triassic to Early Jurassic.