Clarifying the mechanism of dolomitization is of pivotal importance and represents a burning issue among geologists. A comprehensive model to define the genesis of dolomitization in the Cambrian Chaomidian Formation carbonates is still lacking. In the highly focused study, the advanced integration of X-ray diffraction (XRD), X-ray photoelectron spectroscopy (XPS), clumped isotope and carbon/oxygen isotope analyses was used to reveal complex interactions between the genesis and dolomitization of a stromatolite mound in the late Cambrian Chaomidian Formation of China. The results show that the dolomite content increases from bottom to top, along with a shift in lithology from limestone to dolostone. Additionally, as we moved from the base to the summit of the stromatolite mound, the Fe, Mn, and Na contents increase with increasing Mg levels, whereas the δ13C and δ18O values became more positive. Conversely, the levels of Sr and total rare earth elements (REEs) gradually decreased. The dolomite grains in the stromatolite mound are micritic and euhedral to subhedral, with foggy cores and bright edges and low cation ordering. The stromatolite limestone, dolostone, and underlying lime mudstone samples exhibit similar REE patterns: light REE enrichment, heavy REE loss, negative δEu anomalies, and weak negative δCe anomalies. The δ13C and δ18O values fall within the late Cambrian seawater range, suggesting that dolomitizing fluids originated mainly from concentrated seawater and migrated from top to bottom. The δ18O values indicate lower dolomite formation temperatures than calcite formation temperatures, supporting dolomitization during the penecontemporaneous diagenetic stage. Petrographic evidence reveals the presence of pyrite, indicating sulfate-reducing bacterial activity during diagenesis. XPS analysis revealed similar organic functional groups in both the stromatolite limestone and the dolostone, including C-(C = O)-O, C–C/C-(C–H), C-O and C-N. However, the dolostone spectrum exhibited a larger C-OH/C-O peak area, suggesting significant microbial organic matter involvement in dolomite formation. While a kinetic obstacle is recognized as a primary cause of dolomite formation, this study also suggested that microbial activity weakened this obstacle during diagenesis. Thus, microbial metabolism or cyanobacterial decomposition facilitates dolomite formation during the penecontemporaneous diagenetic stage.