The Nihewan Basin, renowned for the numerous world-class Paleolithic sites and diverse mammalian fauna preserved in its sedimentary sequence, is a key area for studying early human evolution in East Asia. Despite extensive studies on the fluvial-lacustrine basin sediments, the evolution and formation process and mechanism of the Nihewan Basin and Nihewan Paleolake remain unclear. Here we assess the spatial pattern and recent history of rock uplift of the Liuleng Shan, one of the main bedrock mountain ranges encompassing the Nihewan Basin, using river profile and topographic analysis. The transient topography of the Liuleng Shan is characterized by two generations of elevated non-lithological slope-break knickpoints that delimit the uplifted Dianziliang and Tangxian relict landscape surfaces, suggesting two episodes of accelerated rock uplift during the Cenozoic. We link the first phase of rapid rock uplift to the initiation of the central and northeastern portions of the North Liuleng Shan Fault (NLSF) during the opening of the Shanxi Graben System in the Late Miocene, implying the initiation of the Nihewan Basin at this time. We propose that the dextral transtensional southwestern portion of the NLSF formed and propagated northeastward at around 4.2 Ma, and was responsible for the second phase of surface uplift. This phase of deformation also terminated the Tangxian planation process and led to the further subsidence of the Nihewan Basin. Accordingly, drainage rearrangement and fault activity hydrologically closed the Nihewan Basin, resulting in the development of the Nihewan Paleolake. Our findings outline a timeline for the geomorphic evolution of the Nihewan Basin and Nihewan Paleolake, highlighting the dominant role of tectonics in their formation.