This paper focuses on the detailed study of the characteristics of Epiphyton and Epiphyton microbialites in the Zhangxia Formation (Third Series of Cambrian), Shandong Province. Epiphyton is dendritic cyanobacteria, which usually grow upward to form bush-like colonies in the interior of the microbial mounds. Chambered Epiphyton colonies, similar to Renalsis in terms of morphology, were found in the outer part of the microbial mounds. Chambered Epiphyton colonies formed due to local high-energy conditions (e.g., currents or waves) in the outer part of the microbial mounds. The preservation condition after formation of Epiphyton chambers was ascribed to calcification of microbes and early diagenesis. The framework of Epiphyton microbialite is mainly constructed by Epiphyton, and therefore, Epiphyton microbialite can be called “Epiphyton framestone”, a new type of microbialite in the previous classification. Epiphyton framestone usually formed in the platform margin or outer-platform slope, and its growth was affected by hydraulic conditions, solar insolation, and sea-water clarity, etc.