Recently published age and structural data allow the reconciliation of previously conflicting models for Late Jurassic genesis of the Josephine, Smartville and Coast Range ophiolites, and the Nevadan orogeny in the Klamath Mountains and Sierra Nevada. The resulting model is consistent with the mode of initiation, location and geometry of the Great Valley forearc basin, and with the lack of a significant forearc basin west of the Klamath Mountains. The Coast Range ophiolite formed by backarc spreading west of an east‐facing intraoceanic arc. Soon thereafter, a remnant arc was calved off the west side of this arc, and the Smartville ophiolite formed by backarc (interarc) spreading. During this time, the Sierran phase of the Nevadan orogeny began as the intraoceanic arc encountered the west‐facing continental‐margin arc of North America. An east‐west‐trending calcalkaline dike swarm in the Sierra Nevada foothills may mark the trajectory of the colliding arcs at the initiation of the collision. Simultaneously, a new subduction zone was initiated west of the collision (suture) zone, and this new trench propagated southward, thus trapping the Coast Range ophiolite in the new forearc area south of the Klamath area. Intense deformation in the Sierran region resulted from this collision, and both magmatic arcs became inactive as the last remnant of intervening oceanic crust was subducted. Continued westward relative movement of the North American arc was permitted north of the Sierra Nevada owing to the lack of a colliding intraoceanic arc. The result was the westward rifting of the continental‐margin arc by intraarc spreading, which formed the Josephine ophiolite in the Klamath area. The Klamath phase of the Nevadan orogeny resulted from contraction of the west‐facing intraoceanic arc and Josephine backarc basin beneath the continental margin. Basal sediments of the Great Valley forearc basin were derived primarily from the sutured arc/ophiolite terranes, and were deposited on top of the Coast Range ophiolite, the southern edge of the Klamaths, and the western side of the Sierra Nevada. A new (late Mesozoic) magmatic arc was superposed across the previously accreted terranes, and formed the primary sediment source for the Cretaceous forearc basin.