Abstract The Fennoscandian transition zone, including the Sorgenfrei–Tornquist Zone, constitutes the weakened and faulted bedrock between a craton, including the ancient continent Baltica to the north, and the boundary between Baltica and Avalonia along the Trans-European Fault Zone to the south. Early Permian subsidence in this transition zone resulted in the development of various basins and the initiation of a more or less continuous Permian–Paleogene depositional cycle. In southwestern Sweden, magmatic activity associated with transtensional deformation along the Sorgenfrei–Tornquist Zone prevailed during the Late Carboniferous–Permian. However, the transition zone is dominated by a Mesozoic sedimentary rock succession displaying both hiatuses and great lateral variability in composition and thickness, which can be related to several tectonic events including the progressive break-up of Pangaea. Much of the deposition took place in continental, coastal and shallow-marine settings. Early–Middle Jurassic block faulting and basanitic or melanephelinitic volcanism, as well as Late Cretaceous tectonic inversion along the Sorgenfrei–Tornquist Zone, related to a changeover to a predominantly compressive tectonic regime coeval with the Alpine orogeny, significantly influenced the depositional setting. Subsequent Paleogene–Neogene regional uplift of the southwestern margin of Baltica resulted in significant erosion of the bedrock.