Well-preserved specimens of Kepingophyllum aksuence Wu et Chow were collected from Early Permian strata in western Tarim Basin, Xinjiang. More than 100 serial thin sections were made for this study. Kepingophyllum aksuence displays a unique increase pattern. The bud appears in lonsdaleoid dissepiments between the corallites where the wall of parent corallite disappears and the area becomes aphroid. This increase pattern is different from other lateral increases of most colonial rugose corals, and therefore has taxonomic significance to differentiate Kepingophyllidae from other compound rugose corals. It is also discussed that Kepingophyllum aksuence has a high “reproductive integration”, which means a rapid growth of buds during the offsetting process. Kepingophyllum was possibly originated from Ivanovia and was also a probable ancestor of Wentzellophyllum, which is supported here by more or less the similarity of the blastogeny in different stages of three taxa.