Tectonic processes drive the evolution of basins through local and regional changes in topographic relief, which have long-term effects on mammalian richness and distribution. Mammals respond to the resulting changes in landscape and climate through evolution, shifts in geographic range, and by altering their community composition. Here, we evaluate the relationship between tectonic episodes and the diversification history of fossil mammals in the Miocene Dove Spring Formation (12.5−8.5 Ma) of southern California, USA. This formation contains a rich fossil record of mammals and other vertebrates as well as structural and sedimentological evidence for tectonic episodes of basin extension, rotation, and translation. We used several methods to compare the fossil record to the tectonic history of the Dove Spring Formation. We updated the formation’s geochronology to incorporate current radiometric dating standards and measured additional stratigraphic sections to refine the temporal resolution of large mammal (>1 kg) fossil localities to 200-kyr (or shorter) intervals. Observed species richness over time follows the same trend as the number of localities and specimens, suggesting that richness reflects sampling intensity. Estimates of stratigraphic ranges with 80% confidence intervals were used to conduct per capita diversification analysis and a likelihood approach to changes in faunal composition from one time interval to the next. While edge effects influence time bins at the beginning and end of the study interval, we found changes in diversification rates and faunal composition that are not solely linked to preservation. Several rare species appear at 10.5 Ma and persist through the top of the formation despite variable preservation rates. Changes in faunal composition at 12.1 Ma and 10.5 Ma are not associated with elevated preservation rates, which indicates that some faunal changes are not primarily driven by sampling effort. The lower portion of the formation is characterized by high origination rates and long residence times. The upper portion has high per capita extinction rates that increased in magnitude as basin rotation and translation progressed from 10.5 Ma. The greatest change in faunal composition coincided with basin rotation and translation that interrupted a long-running extensional period. Tectonics played key roles in the diversity of mammals by determining fossil productivity and shaping the landscapes that they inhabited.