Abstract: In this paper, the relationship between Grade?III sequence interfaces and Himalayan movement is discussed systematically. It is suggested that the eight sequences surfaces were developed in Eocene-Miocene and respondent to different stages of Tibetan plateau uplifting. The strongest tectonic movement in this studied area took place at least four times, representing four significant responses of Himalayan movement or Tibetan plateau uplifting, by which the Himalayan movement can be divided into four episodes. The Tertiary in this area can then be classified as one Class?I sequence, four Class?II sequences, seven Class?III sequences and eleven base?level cycle ones. All of them are composed of the sequence stratigraphic system in this area. By in?depth division and correlation of them, the control effects of them on the different types of lithologic traps are analyzed. It is concluded that the lowstand system tracts (LST) are the most favorable horizons of the lithologic traps development in southwestern Qaidam basin. The main lithologic reservoirs are controlled by the maximum lake flooding surface, and the stratigraphic overlapping reservoirs or unconformity?barriering stratigraphic reservoirs are controlled by the sequence interfaces