This work delves into the intricate Paleoproterozoic geological setting of Uruguay, focusing on the Rio de la Plata Craton (RPC) and its prominent constituent Piedra Alta Terrane (PAT). The PAT constitutes the core of the RPC, characterized as a complex geological entity that encompasses a granite-migmatite basement, metamorphic belts, granite intrusions, and Proterozoic magmatism. To the west, it interfaces with the Transbrasiliano-Kandi tectonic corridor, bounded by the Late-Neoproterozoic Pampia Terrane. The PAT s southeastern boundary extends to Sierra de Tandil and perhaps to Sierra de La Ventana, demarcating its limits with Phanerozoic rocks of the North Patagonian Massif. The Sarandí del Yí shear zone defines the eastern limit of the PAT. Despite varied interpretations of the Piedra Alta Terrane’s significance, it is important to note that consensus prevails regarding its four major associations: a granite-gneiss-migmatitic basement complex, three volcanosedimentary belts of low to medium metamorphic grade, diverse late igneous intrusions, and extensional Statherian magmatism (1.79 Ga), represented by tholeiitic gabbroic dikes. In this study, a novel tectonic model for the PAT evolution emerges, supported by an extensive zircon dataset comprising new U-Pb ages, Hf isotopes, and trace element geochemistry. The analytical core involves U-Pb analyses on zircon for dating igneous rocks and establishing the provenance and maximum age of deposition of metavolcanosedimentary sequences. Lu-Hf isotopic analyses on the same zircon crystals provide petrogenetic insights, revealing episodes of crustal growth and minor recycling. Trace element geochemistry and zircon εHf(t) data further accentuate these findings, hinting at mantle source enrichment due to subduction within an intraoceanic magmatic-arc arc setting.