The Altun Orogenic Belt (AOB) is located on the northern margin of the Tibetan Plateau. We report the petrography, zircon U-Pb ages, Hf isotopic compositions, and whole-rock geochemistry of the Tugeman pegmatitic and granitic rocks from the AOB to constrain their petrogenesis and tectonic setting. Zircon U-Pb dating of the pegmatitic and granitic rocks yielded ages of 500–440 Ma, which we interpret as the emplacement ages of the granites and formation age of pegmatite. The granites are weakly peraluminous to peraluminous (A/CNK = 1.01–1.26), and they have high SiO2 (63.9–74.2 wt%) and Al2O3 (13.7–17.6 wt%) and low CaO (0.72–3.80 wt%) and P2O5 (0.06–0.44 wt%) contents. They show marked depletion in HREEs, enrichment in LREEs, and pronounced negative Eu anomalies, and they are enriched in Th, U, K, Pb, Nd, and Sm and depleted in Ba, Nb, Ce, Sr, P, and Ti. Zircon εHf(t) values vary from − 12.0 to + 3.3, with two-stage Hf model ages of 2.2–1.2 Ga, implying that the granites were derived mainly from ancient crust with a minor contribution from juvenile crust. Weakly peraluminous pegmatitic rocks have geochemistry characters of SiO2 (74.4–79.9 wt%) and Al2O3 (12.3–14.9 wt%) and low CaO (0.08–0.69 wt%) and P2O5 (0.05–0.33 wt%), depletion in HREEs, enrichment in LREEs, depletion in Ba, La, Ce and Ti, enriched in U, K, Pb and P. Granitic pegmatite can be formed at different stages of crystallization differentiation of granitic magma, but the pegmatite associated with highly differentiated granites is favorable to the Li and/or Be mineralization, while the pegmatite associated with low differentiated granites (such as biotite granites) is unfavorable to the Li and/or Be mineralization. Based on our findings, we propose that the Tugeman granitic magmas originated from partial melting of crustal metagreywacke and metabasalt. Furthermore, we suggest that the early Paleozoic magmatism in the Central Altun Block (CAB) can be categorized into three groups, which correspond to different tectonic events. These events include the northward subduction of the Central Altun Ocean (CAO) beneath the CAB around 520 Ma, the closure of CAO at 490–480 Ma, and post-collisional extension at 480–440 Ma induced by slab breakoff and delamination of the subducted CAO.