The “lower” Ellis Group (M. Jurassic) of northern Wyoming and southern Montana affords an excellent opportunity to examine the influence of tectonics, sea-level change, and incipient topography on facies dynamics and the evolution of mixed sediment ramp deposits. The Sawtooth, Piper, and Gypsum Spring formations (Bajocian to Callovian) represent sedimentation along the forebulge of a retro-arc foreland basin. The “lower” Ellis Group records deposition during two transgressive–regressive cycles, (1) a Bajocian-age cycle dominated by evaporites and red shales, and (2) a Bathonian-age cycle characterized by carbonates, evaporites, and red shales. These cycles are capped by a Callovian-age cycle distinguished by carbonates and red shales that is represented by the “lower” Sundance and Rierdon Formations. Transgressive episodes favored intensified chemical sediment production resulting in thick units deposited in subtidal to peritidal environments. Regressive periods are characterized by supratidal redbed progradation and subsequent shallowing–upward cycles. The depositional cycles in the lower Ellis Group developed due the interplay between sea-level change and tectonic subsidence related to the evolution of a retro-arc foreland basin. Differential subsidence before, during, and after deposition created paleohighs that locally influenced accommodation space and, thereby, complicated depositional and erosional patterns. This paper provides a regional framework for further analysis of the depositional history of the lower Ellis Group by addressing the stratigraphic relationships between the Sawtooth, Piper, and Gypsum Spring Formations.