This paper documents a new Permian-Triassic carbonate sequence which recorded the end-Permian mass extinction in the isolated oceanic setting of Neotethys in southwestern Tibet, China. The sequence is over 350m thick and consists of the Gyanyima and the Lower Lanchengquxia formations in ascending order. The Lopingian (Late Permian) Gyanyima Formation is composed of fossiliferous reddish carbonates dominated by Colaniella grainstone and reef facies including fenestrate/sponge/coral framestone and bafflestone. 156 species are recognized from the Lopingian Gyanyima Formation. Composite ranges of brachiopods, ostracods, rugose corals and foraminifers at the Gyanyima Section suggest that evolution and diversification of Permian marine organisms continued to the end-Permian preceding a major faunal extinction close to the Permian-Triassic boundary (PTB), coincident with a 2-3‰ negative shift of δ13Ccarb. The timing and accelerating extinction pattern and the negative δ13Ccarb excursion are largely comparable with those reported from many previously-documented sections on continental shelf environments.Based on a detailed lithofacies analysis, the latest Permian reefal facies is sharply replaced by ostracod/crinoid packstone/grainstone with abrupt abundant occurrences of Early Triassic conodonts at the Gyanyima Section. This is then followed by thrombolitic microbialite, stromatolite, packstone containing abundant spherical microbes, and bivalve/ammonoid packstone of tidal and intertidal facies. This distinct lithofacies and biofacies shift would, therefore, suggest a dramatic faunal community and environmental change across the PTB. Distinct palaeoclimate fluctuations through the P-T interval are also indicated by the alternation of warm- and cool-water faunas through the uppermost part of the succession. The lower part of the Gyanyima Formation is characterized by a warm condition as indicated by Cathaysian-dominated fossils. This was then followed by a mild cooling event as suggested by the occurrence of many distinct peri-Gondwanan elements and absence of compound corals. The latest Changhsingian is characterized exclusively by warm-water faunal elements of Cathaysian affinities, together with the negative shift of δ13Ccarb, suggesting a rapid warming event at the very end of Permian in association with much more widespread volcanic activities than we thought before. © 2010 Elsevier B.V.