Chuxiong basin locates at the southwestern margin of Yangtze Plate and Central Yunnan Secondary Block of the South Sichuan-Yunnan rhombic block. It is bounded by the Red River Fault in the southwest corner and Xiaojiang Fault in the east border. Since Mesozoic, the basin suffered from a pair of extrusion force with northward direction from the Tethys tectonic domain and westward direc? tion from Marginal Pacific tectonic domain. Each force dominated alternately in different tectonic stages and results in left or right-lateral strike-slips of the Red River Fault which controlled the tectonic and depositional evolution of the Basin. The wrench tectonics was identified according to the planar and sectional characteristics with the results of seismic interpretation in Chuxiong basin. On that basis, the dynamic deformation mechanism of the wrench tectonics in each tectonic stage was analyzed combining Paleomagnetic data and stress field of each stage as well as depositional evolution of the basin. It is concluded that:①The Chuxiong basin was not a foreland basin which located on the east side of Jinshajiang collision belt after the conjunction of Indochina block into Yangtze Plate. The Red Riv?er Fault was mainly in strike-slip motion because of the small angle between the strike of the fault and the movement direction of Indochina block, and didn’t give rise to large scale mountain orogenesis. Thereafter, the Chuxiong basin was evolved into a rifted basin in the SN directional extrusion force of the late Indosinian period.②The abrupt change of sedimentary thickness in the region of Chuxiong-Mouding was influenced by the pull-apart effects during the striking-slip movement of Chuxiong-Jianshui Fault and Mouding Fault. ③The distribution of igneous rock in the basin is closely related to the shear movement of the large-scale basement faults in the later stage, which makes it easy to be outlined and to be avoided in the hydrocarbon exploration.