Internal phosphorus loading (IPL), as an important part of lake phosphorus cycle and the key to solve the eutrophication problem, is still an important cause of regional and seasonal algal blooms for some mesotrophic lakes located in plateau areas. We investigated the composition, distribution of P fractions in sediments and suspended particulate matter (SPM) of Erhai Lake, southwest China, and explored the relationships between environmental variables and spatial-temporal variations of P fractions. The total P (TP) in surface sediments ranged from 817 to 1216 mg/kg, with inert Ca-P (32%) and Res-P (24%) predominating, at a moderate level. The comparison of short-term release fluxes (0.08 mg/(m2·d)) and long-term release fluxes (0.09 mg/(m2·d)) reflected that the northern region was recovering slowly from the previous P pollution. Mobile-P (the sum of loosely adsorbed P, iron bound P, and organic P) accounted for 52.3% of the TP in SPM and showed high spatial-temporal variations, which were closely related to the growth of algae throughout the investigation. The results suggested that sediments could make a sustained contribution to IPL, and that the P in SPM was highly active and significantly contributed to eutrophication in Erhai Lake especially at the time of seasonal alternations. Our data provided important theoretical bases for the relationship between internal phosphorus loading and eutrophication in plateau lakes.