The Lower Jurassic clastic rocks in the Qiangtang Basin, northern Tibet, are generally regarded as the early sediments of the new Mesozoic Qiangtang Basin (Late Triassic to Early Cretaceous). However, little attention has been paid to the palaeoenvironment, provenance, and tectonic setting of this unit. The QZ‐16 well, located in the east of the northern Qiangtang Basin, firstly recovered the Lower Jurassic strata (Quemo Co Formation) in the Qiangtang Basin. In this paper, the whole‐rock major‐trace elemental characteristics of 34 mudstone samples and detrital zircon geochronology of one sandstone, collected from the Quemo Co Formation of the QZ‐16 well, are reported in order to infer the palaeoenvironment, provenance, and tectonic setting. Quemo Co mudstones are dominated by SiO2 and Al2O3, while Fe2O3, CaO, K2O, and MgO are the second most abundant oxides. They are generally characterized by high REE concentrations, enrichment in light rare earth elements (LREEs), marked negative Eu and Ce anomalies. The REE contents of the mudstones are mainly controlled by terrigenous detrital minerals input. The Lower Jurassic mudstones have relatively high chemical index of alteration (79.1–83.6) values, indicating moderate to high degree of chemical weathering conditions of the source area. Sr/Ba and Rb/K ratios reflect that the marine transgression impact was limited and the mudstones were generally deposited in a brackish water environment. Major, trace, and REE contents indicate that the mudstones were mainly derived from intermediate igneous rocks with subordinate felsic igneous rocks. Prominent age peaks at ca. 200 ~ 400 Ma, 700 ~ 970 Ma, 1,700 ~ 1,900 Ma, and 2,100 ~ 2,700 Ma of the detrital zircon grains suggest that the Lower Jurassic clastic rocks were derived from the Central Qiangtang and Songpan–Ganzi complex. Moreover, tectonic discrimination diagrams based on major and trace elements show that the source of the Lower Jurassic sediments were most likely derived from a collision tectonic setting.