A new foraminiferal fauna is reported from the upper part of the Xiala Formation in the Zhari Namco section in the central Lhasa Block, which contains three species of fusulines and 26 species of small foraminifers. The presence of Reichelina and Codonofusiella in the fauna suggests a Wuchiapingian age. A review of the Lopingian faunas in several localities in the Lhasa Block indicates that this block was under a shallow marine environment during the Lopingian, rather than an uplifted terrestrial environment as previously recognized. The Lopingian palaeobiogeography as well as the sequences of the Lhasa Block differs greatly from the adjacent South Qiangtang, Karakorum and South Pamir blocks, and the Tethys Himalaya region of the Indian Plate. It further suggests that the Lhasa Block was separated from the South Qiangtang Block in the north by the Bangong-Nujiang Ocean and the Tethys Himalaya area in the south by the Neotethys Ocean during the Lopingian time. Furthermore, the dissimilarity of the Guadalupian and Lopingian strata and faunas between the Lhasa and Karakorum blocks and similarity between the Lhasa and Tengchong blocks, may suggest that the Lhasa and Tengchong blocks were linked together during the Permian.