Saline lakes are sensitive to climatic changes, however, it is challenging to reconstruct paleoclimate based on terrestrial evaporite records using conventional elemental and isotopic proxies. Magnesium is a major element in saline lakes, and the Mg isotope composition of brine is responsive to climate-driven processes such as carbonate precipitation and freshwater input. However, little has been explored on the application of Mg isotopes to studies of saline lakes. In this study, the Middle Pleistocene halite deposit from the Xiaoliangshan (XLS) evaporite section in the Qaidam Basin, Northwest China, was selected as a case to evaluate the response of Mg isotopes in the saline lake to environmental events. The Mg isotope data of the halite are complemented by geochemical analyses major elements and Sr-Cl isotopes of the halite component, and C-O isotopes of the associated carbonates. The 87Sr/86Sr ratios of the halite remained homogeneous (0.7111 to 0.7112) throughout the section, suggesting that the material source did not change significantly during the precipitation of the halite beds. By contrast, element ratios (Mg/Na and K/Na) and stable isotope ratios of C, O, Cl, and Mg show remarkable fluctuations along with the sediment profile. Based on the C-O-Cl isotope data, we identified events of freshwater recharging and desalination in an overall dry climatic background that were recorded in the halite. Notably, halite δ26Mg values vary by up to 2‰ in the section (from −1.63‰ to 0.46‰), and the low δ26Mg signature of halite was interpreted to reflect the input of light Mg isotopes into the saline lake in a freshwater recharging event, while the high δ26Mg values were produced by the precipitation of carbonate minerals under arid climatic conditions. Collectively, we suggest that Mg isotopes in terrestrial halite could be a sensitive tracer of basin hydrology. This study for the first time demonstrates the potential of Mg isotopes in terrestrial evaporites to unravel paleoclimatic events.