Mechanism of hydrocarbon formation caused by the Qingshuihu thrust in central Qiangtang area is revealed by field study, seismic reflection profiling and oil drilling. Jurassic marine strata as thick as 3600 m formed high quality source rocks, variety of reservoirs and good caps in the Shenglihe and its adjacent areas southern part of the north Qiangtang depression. However, the Jurassic source rocks kept in immature- low maturity in the Cretaceous due to insufficient buried depth. India- Asia continental collision led to the formation of larger- scale Qingshuihu thrust system, which is composed of northward thrust, imbricate faults and Paleogene foreland basin in north of the central Qiangtang uplift. Structural thickening derived from Paleogene thrust and Paleocene- Eocene sedimentation loading in the foreland basin reconstructed the burial, thermal and hydrocarbon generation history of the Jurassic marine source rocks. Lower- Middle Jurassic marine source rocks of the Quemoco, Buqu and Xiali formations successively strode over hydrocarbon generation threshold in Early Eocene, and formed peak of hydrocarbon generation in Middle Eocene. Paleocene- Eocene compressive stress caused fractures in Middle Jurassic limestone of the Buqu Formation, which formed fractured limestone as well as main oil reservoir beneath the Qingshuihu thrust and its foreland basin. Jurassic marine sedimentation formed source- reservoir- cap systems, and Paleogene thrust caused hydrocarbon generation and accumulation for formation of large oil and gas fields in the Qiangtang basin.