In order to understand sequence development and sea-level fluctuations during the late Middle Cambrian to early Furongian on the North China epeiric platform, the present study focuses on a unique, subtle erosion surface of an extensive (approx. 100 km), strongly deformed limestone bed in the uppermost part of the Gushan Formation, Shandong Province, China. The Gushan Formation and the overlying Chaomidian Formation consist mainly of shales and a variety of carbonates that were deposited in subtidal environments (e.g., deep subtidal, shallow subtidal, shoreface/shoal, subtidal microbial flat, and restricted platform interior). Three third-order depositional sequences (S1–3) are identified, each of which comprises a thin transgressive systems tract (TST) and a relatively thick highstand systems tract (HST). Each sequence is bounded by a drowning unconformity (SB1), a subaerial unconformity (SB2), or a surface of submarine erosion (SB3). The upper sequence boundary (SB2) of sequence 1 (S1) is represented by a subtle erosion surface of an extensive, deformed limestone bed with a wide variety of soft-sediment deformation structures (e.g., lime mudstone breccias, chaotic wacke-packstone laminae and fragments, homogenized oolites, and clastic dykes), and is overlain by small sporadic microbial buildups and an extensive bioclastic grainstone bed. The deformed limestone was formed during early diagenesis by differential deformation processes (brecciation, liquefaction/fluidization, and injection) which were most likely induced by pore-water overpressure during the period of rapid sea-level fall. Despite the lack of subaerial exposure features (e.g., paleokarst, paleosol, etc.), the characteristics of the erosion surface (cutting well-lithified sediment below), the missing of a significant geological record (the Prochuangia biozone), and the worldwide correlatable positive carbon isotope excursion collectively indicate that the erosion surface developed under conditions of subaerial exposure after contemporaneous marine cementation of the deformed sediment. The missing of the Prochuangia biozone is most likely due to non-deposition at a subaerial hiatal surface. The erosion surface was submerged as a result of subsequent rise in sea level, where sporadic microbial buildups formed under suitable conditions. Freshly deposited, winnowed, shell-dominated transgressive lag deposits (containing Chuangia trilobite fragments, brachiopod shells, and abundant glauconite grains) formed with continued rise in sea level, which became, in turn, overlain by shale-dominated facies. The unique combination of the subtle erosion surface ( sensu stricto a subaerial unconformity) and the underlying deformed limestone bed provides an important criterion for recognizing the subtle changes in relative sea level on shallow epeiric platforms.