Abundant Neogene adakitic magmatism occurred in the southern Lhasa subterrane after the onset of the India–Asia collision while convergence continued. However, the tectonic setting and magmatic evolution of the adakitic rocks are still under discussion. This study includes new mineral chemical and whole-rock geochemical data as well as zircon U-Pb and Lu-Hf isotopes of adakitic intrusive rocks from the Gyaca and Nyemo locations in the southern Lhasa subterrane. Laser ablation–inductively coupled plasma–mass spectrometry (LA–ICP–MS) zircon U-Pb dating yielded crystallization ages of ca. 30 Ma for the Gyaca and Nyemo monzogranite and ca. 15 Ma for the Nyemo granodiorite. Both have common chemical signatures such as low MgO and heavy rare earth element contents as well as low compatible element abundances, indicating that these rocks result from partial melting of thickened lower crust with residual eclogite and garnet amphibolite. Furthermore, these rocks are characterized by variable positive zircon εHf(t) values, suggesting a juvenile magma source with variable ancient crustal contributions. Taking previous data into account, the adakitic magmatism concurs with an early late Eocene to Oligocene (ca. 38–25 Ma) and a late Miocene (ca. 20–10 Ma) phase. The adakitic rocks of the two phases are characterized by different fractionation evolutions of light and medium rare earth elements. We propose that the early-phase adakitic rocks were generated by the anatexis of Lhasa terrane lower crust owing to crustal shortening and thickening subsequent to the onset of the India–Asia collision and the upwelling of hot asthenosphere beneath the Lhasa terrane caused by the break-off of the Neo-Tethyan oceanic slab. The latest phase of adakitic rocks, however, relates to upwelling asthenosphere following the delamination and/or break-off of the subducting Indian continental slab.