In northwestern British Columbia, the Permian Nahlin ophiolite in the northern Cache Creek terrane comprises spinel harzburgite tectonite with minor lherzolite, lower crustal mafic and ultramafic cumulates, gabbroic rocks including dikes intruding mantle harzburgite, and basaltic volcanic and volcaniclastic rocks. New lithogeochemical data from the Menatatuline Range area confirm that plutonic and volcanic rocks of the ophiolite are tholeiitic and arc related, while only a minor component of volcanic rocks are alkaline intraplate basalts. Tholeiitic basalts of the Nahlin ophiolite represent the products of 2%–20% fractional melting, and their complementary residue may be peridotite from the ophiolite mantle section. Correlative tholeiitic volcanic sections can be found elsewhere in the northern Cache Creek terrane, and they may be linked to a regionally extensive (∼200 km) intraoceanic arc. The arc tholeiite geochemistry of the plutonic and volcanic rocks, and the highly depleted nature of the mantle residues, imply that the Nahlin ophiolite formed in a supra-subduction zone environment. The Nahlin ophiolite therefore occupied the upper plate during intraoceanic collision prior to emplacement of the Cache Creek terrane. The volumetrically minor ocean island basalt type volcanic rocks in the northern Cache Creek terrane are associated with carbonate successions bearing Tethyan fauna. These sequences are likely fragments of oceanic plateaux and their carbonate atolls sliced off of the subducting plate and are unrelated to the Nahlin ophiolite-arc system.