Using fresh core samples, we have determined the origin and formation process of Eocene lacustrine dolomites in the Tibetan Plateau through petrological, mineralogical, and geochemical analyses. Dolomitic rocks were collected from the upper member of the Eocene Niubao Formation in the Lunpola Basin, consisting of dolomitic mudstone, argillaceous dolomite, dolomite-bearing mudstone, and mud-bearing dolomite. These dolomites are dominated by aphanotopic and microcrystalline dolomites, with minor amounts of euhedral or subhedral powder- and fine-crystalline dolomites. Carbon and oxygen stable isotopes, combined with ubiquitous gypsum in study area, indicate a semisaline continental lake under strong evaporative conditions. The revealed relatively high temperature of the dolomitization (33.8°C–119.1°C), combined with hydrothermal minerals such as cerous phosphate and barite, reflect the participation of dolomite from hot fluids. Moreover, the inferred dolomitization temperatures decrease gradually toward the center of the lake basin, suggesting the resurgence of hydrothermal fluids along a fault zone on the lake margin. This proves that frequent thermal events occurred at the boundary fault of the Lunpola Basin margin during early Himalayan orogenesis. In addition, Jurassic carbonates interacting with hydrothermal fluids, as well as strong evaporation conditions, likely provided favorable conditions for the formation of primary lime sediments. A rich source of brought by volcanic ash, hydrothermal fluids, and the Jurassic carbonates then created conditions for dolomitization during the depositional period. Strong evaporation under a relatively hot climate enhanced penecontemporaneous dolomitization, thus forming dolomite. Tibetan Plateau was under arid to semiarid climate conditions, and there was a widespread distribution of dolostones in western, central, and northern China during the Eocene period. The hydrothermal dolomites of the upper Niubao Formation testify for active hot springs, whereas lacustrine dolomite imply arid or semiarid climates during the Eocene, in the early stages of Himalayan orogenesis.