This paper deals with the geographic distribution and geological setting of the Jehol (northeastHebei-southwest Liaoning-southeast Inner Mongolia) fauna, and discusses the origination and the evolution ofits major biological groups. It is demonstrated that the Yan-Liao (northern Hebei-western Liaoning) area is theprovenance for the fauna. Why the fauna originated and developed in the area was intimately related to suchfactors as the palaeoclimate, palaeogeography, crustal movement, volcanism and frequent reversals of magnet-ic polarity at that time, in addition to the internal factors of the organisms themselves.