The fish and conchostracan fossils are firstly discovered from sedimentary strata of Early Cretaceous in Lingshan Island, Qingdao, Shandong, China. The coordinate of discovery site is N35°45′08″, E120°9′12″. The rocks preserved the fossils are dark mudstone, shale and french grey sandstone alternating layers. The fish is Lecoptera sinensis Woodward and the conchostracan is Yanjiestheria Chen, belonging to four species: Y. kyongsangensis (Kobayashi), Y. wannanensis Chen et Shen, Y. chekiangensis (Novojilov) and Y. yumenensis (Chang et Chen). Lecoptera was the typical element of the Jehol Biota. Meanwhile, both fish and conchostracan species were widespread in the Jiaozhou—Laiyang Basin of Shandong Province and attributed to continental lacustrine fauna of the Early Cretaceous. The strata that contained above fossils buried in situ. should be part of continental depositions. Owing to the high similarity in the lithology and sedimentary environment with the Fajiaying Formation of the Laiyang Group in southern region of Jiaozhou—Laiyang Basin, it is suggested to use the Fajiaying Formation rather than "the Lingshandao Formation", which was named after the marine turbidite deposits.