The Laochang polymetallic ore deposit at Lancang is one of the well known ancient ore deposits associated with volcanic rocks in the Sanjiang (Tri-river) region of Southwest China. Volcanic rocks are dominated by alkali basalt and trachyte basalt. There has long been a controversy on the environment of formation of basalts. Some scholars hold that the basalts were formed in a continental environment, some thought they were formed in an oceanic environment and others considered that the basalts were emplaced in a back-arc basin. This study focuses on the geochemical characteristics of the basalts on the basis of their major elements, REEs and trace elements. At the same time, strongly incompatible elements such as Ta, Th and Hf and their ratios were used to differentiate the geotectonic settings of basalts. The results showed that the basalts in the region studied were formed in a continental rift environment. The Laochang polymetallic ore deposit at Lancang is one of the well known ancient ore deposits associated with volcanic rocks in the Sanjiang (Tri-river) region of Southwest China. Volcanic rocks are dominated by alkali basalt and trachyte basalt. There has long been a controversy on the environment of formation of basalts. some scholars hold that the basalts were formed in a continental environment, some thought they formed formed in an oceanic environment and others considered that the basalts were emplaced in a back-arc basin. geochemical characteristics of the basalts on the basis of their major elements, REEs and trace elements. At the same time, strongly incompatible elements such as Ta, Th and Hf and their ratios were used to differentiate the geotectonic settings of basalts. The results said that the basalts in the region studied were formed in a continental rift environment.