A Kubergandian (Kungurian) fusuline fauna from the lower part of the Lugu Formation in the Cuozheqiangma area, central Qiangtang Block is described. This fusuline fauna belongs to the Southern Transitional Zone in palaeobiogeography, and is characterised by the presence of the distinctive bi-temperate genus Monodiexodina and many genera common in lower latitude Tethyan areas such as Parafusulina and Pseudodoliolina. The occurrence of Monodiexodina in the fauna confirms that the seamount-type carbonates of the Lugu Formation did not originate from the Palaeotethys Ocean, but rather from a branch of the Neotethys Ocean after the rifting of the Qiangtang Block from the Tethys Himalaya area in the Artinskian.