The Teslin zone in south-central Yukon has previously been described as a discrete zone with a steep foliation unique to the zone. It includes the Anvil assemblage and the narrowest portion of the Yukon-Tanana terrane (the Nisutlin assemblage), and is defined by post-accretionary faults: the Big Salmon fault to the west and the d'Abbadie fault system to the east. The zone was interpreted as a lithospheric suture or a crustal-scale transpression zone, and as the root zone of klippen lying on the North American craton to the east. We demonstrate that deformation and metamorphism are the same inside and outside the zone. The steep transposition foliation in the zone, in contrast to adjacent rocks to the east, coincides with the steep limb of a regional F3 structure. This fold has a shallow limb in the easternmost part of the zone and immediately east of the zone. Thus we reject earlier interpretations. If a suture exists between the obducted Anvil and Yukon-Tanana Nisutlin assemblages and North America, it is a shear zone that occurs at the base of the obducted rocks, which has been folded by the F3 fold. However, evidence that this thrust boundary is a lithospheric suture is lacking. A consequence of our interpretation is that North American rocks pass under the eastern Teslin zone and outcrop to the west of the Nisutlin and Anvil assemblages. This geometry precludes the possibility of the Teslin zone being the root zone of the klippen.