The Baiganhu area in the Eastern Kunlun Terrane on the northern margin of the Tibetan Plateau contains world-class Sn-W deposits in close association with monzogranite. However, the origin of granite and the tectonic setting for the Sn-W mineralization have not been well constrained. Here we present the petrological and geochemical data of the granite (431 Ma) associated with the Sn-W mineralization to evaluate the geological-tectonic setting for the mineralization. The monzogranite has high SiO2 contents, ranging from 65.8 to 73.5 wt%, and shows a geochemical affinity with A2-type granites. Relatively high zircon saturation temperatures, ranging between 750 °C and 921 °C, suggest that the parental magmas were hot. The whole-rock εNd (t = 431 Ma) values range from –2.7 to –3.1 with TDM ages between 1810 and 1040 Ma, and zircon εHf (t = 431 Ma) values range from + 0.7 to + 4.1 with TDM ages between 1040 and 900 Ma. The data suggest that the magmas had significant contributions of old rocks. The granitic rocks intruded into quartz-muscovite schist of the Proterozoic Xiaomiao Complex, which underlies the vast area. Zircon grains in the schist are magmatic in origin based on sharp oscillatory zoning and high Th/U ratios (>0.2). The 207Pb-206Pb zircon ages (n = 25) of the schist range from 1898 ± 2 to 1700 ± 6 Ma, suggesting that the zircon grains originate from a Paleoproterozoic magmatic belt. Such ancient rocks, either as lower crustal component or subcontinental lithospheric mantle, contributed ∼ 30 % to the parental magmas. We conclude that post-collisional extension within the Eastern Kunlun Terrane was accompanied by upwelling and adiabatic melting of the asthenospheric mantle which induced partial melting of subcontinental lithospheric mantle and lower crustal rocks and formed granitic magmas. Aqueous fluids separated from the granitic magma which preferentially incorporate W and Sn contributed to the mineralization in and around the granites.