The dolomitization of carbonate rocks has always been a hot topic in the study of the dolomite reservoir. In this study, the genesis of Cambrian dolomite in the Bachu area, Tarim Basin, was assessed through petrographic examinations, isotope compositions (C, O, and Sr), trace and rare earth elements, and fluid inclusion microthermometry. Microscopic analysis revealed three types of dolomites: very fine-crystalline, nonplanar dolomite (D1); fine-crystalline, nonplanar to planar-s dolomite (D2); and medium- to coarse-crystalline, planar-e to planar-s dolomite (D3). D1 dolomite exhibits well-preserved original sedimentary features, such as algal laminae, stromatolite, and evaporite streak, and is characterized by the 87Sr/86Sr value and δ18O value in equilibrium with the coeval seawater, its high Sr and Na content, and its low Mn content. This indicates that D1 dolomite is primarily a penecontemporaneous dolomite in tidal flat or lagoon environments, and its dolomitizing fluid is mainly evaporated mesosaline to penesaline seawater. D2 dolomite shows ghosts of precursor particles; features δ13C values in equilibrium with the coeval seawater, high 87Sr/86Sr values, low Sr content, and positive Eu anomaly; and is widely distributed close to stylolite. This illustrates that D2 dolomite was principally formed by seepage–reflux dolomitization, and is closely related to hydrothermal activity and pressure dissolution. D3 dolomite displays a crystal texture with a cloudy core and compositional zoning, and the original sedimentary fabrics cannot be identified. It has similar δ13C values and REE patterns to the calcite precipitated from coeval seawater, high 87Sr/86Sr values, low Sr contents and high Mn/Sr ratios, which suggests that D3 dolomite is chiefly related to the recrystallization of the precursor dolomite during the deep burial stage, and the deep circular brine provides Mg ions through the fluid–rock reaction. This study shows that the Cambrian dolomite in the Bachu area is mainly formed in the coeval seawater environment during the penecontemporaneous and shallow burial stages, and has extensively suffered from recrystallization and burial diagenesis due to long-term deep burial, which was further strengthened in the fracture-enriched area.