Lacustrine microcrystalline dolostones in the ancient records have been commonly interpreted as of an evaporitic origin, on the basis of their numerous occurrences in modern evaporative shallow lakes. This interpretation obscures the forming mechanisms of dolostones formed in a deep lacustrine setting, where dolostones interbedded with shale become a focus of hydrocarbon source rocks in recent years. In this study, an alternative non-evaporitic origin of dolomite is interpreted for a Permian lacustrine laminated dolostone. The dolostones are thinly intercalated with tuffaceous shales and composed mainly of volumetrically abundant, low-ordered, subhedral to euhedral, microcrystalline dolomites with a variable amount of pyroclastics. Evidence for evaporation (e.g., the presence of halite, gypsum and shrinkage cracks) and typical methanogenic microfossils is absent. Instead, our dolostones are unevenly and locally distributed as thin beds or lenses and intercalated with tuffaceous shale and have a formation temperature ranging from 31.4 to 73.8 °C, as estimated from dolomite clumped oxygen? isotope thermometry. In addition, the dolostones have a87Sr/86Sr ratio similar to that of the mantle (0.705154 on average) and extremely negative δ18O (−2.9‰ to −24‰) and positive δ13C (5.1‰–10.8‰) values. A lateral trend of increasing formation temperature of the dolostone toward the volcanic center correlates with the trends of: 1) an increasing amount of pyroclastics, euhedral dolomite crystals, Fe, and TOC, and an increasingly positive δEu value, and 2) decreasing values of 87Sr/86Sr and δ18O. The correlation suggests that a local temperature increase and frequent elemental (Fe and Mg) cycling between the conditions of dolomite supersaturation and undersaturation, which are controlled by episodic volcanic-hydrothermal activities are the causes for dolomite nucleation and growth, resulting in the formation of massive dolostone during deposition and shallow burial. The process also affected organic matter accumulation and local transformation to immature or early mature hydrocarbon during deposition and early burial. The results establish a volcanism-controlled temperature range for primary dolomite nucleation and growth, as well as hydrocarbon generation in a deep lake environment during the period of deposition and early burial, and provide insights on shale oil exploration in petroliferous rift basins.