The Jian forsterite jade, named for its enrichment of end-member forsterite, is a new type of jade discovered in Ji'an County (Jilin Province, Northeast China). The formation mechanism of this rare end-member forsterite remains unclear. In this study, we present the mineral chemistry and oxygen isotope analysis of end-member forsterite to elucidate the formation mechanism of the Jian forsterite jade. The Jian forsterite jade can be divided into three main types: yellowish-green, dark-green, and black. The Jian forsterite jade consists mainly of forsterite, serpentine, as well as minor brucite, spinel, phlogopite, dolomite, calcite, magnesite, and magnetite. The Fo% content (100 × Mg/[Mg + Fe], mol%) of forsterite varies from 96.69 to 99.82. All tested forsterite samples show low Ni, Mn, Cr, and Ca contents and very high B contents. The δ18O values of forsterite range from 13.79 ‰ to 18.57 ‰, which are significantly higher than those from the mantle and are similar to those from skarn, marble, and calc-silicate rocks. The oxygen isotope values of forsterite, coupled with a distinctive trace element signature, suggest that the genesis of end-member forsterite results from a siliceous fluid-mediated decarbonation of Mg-rich dolomite. The genesis of the Jian forsterite jade can be outlined in two main metamorphic stages: (1) high-temperature prograde stage related to the interaction of the gneiss-derived SiO2-rich fluids with overlying dolomite. High temperature leads to the formation of forsterite, spinel, and calcite mineral assemblage. (2) low-temperature retrograde stage characterized by the infiltration of hydrous fluids. Hydrous silicate minerals, mostly serpentine, phlogopite, and talc, are formed during this stage. Our work highlights and confirms the effectiveness of the trace element geochemistry of forsterite in identifying magnesian skarns, and classifies the forsterite in the Jian forsterite jade as an extreme example of this occurrence.