Abstract A significant transition in tectonic regime from extension to compression occurred throughout East Asia during the mid-Cretaceous and has stimulated much attention. However, the timing and driving mechanisms of the transition remain disputed. The Erlian Basin, a giant late Mesozoic intracontinental petroliferous basin located in the Inner Mongolia, Northeast China, contains important sedimentary and structural records related to the mid-Cretaceous compressional event. The stratigraphical, sedimentological and structural analyses reveal that a NW–SE compressional inversion occurred in the Erlian Basin between the depositions of the Lower Cretaceous Saihan and Upper Cretaceous Erlian formations, causing intense folding of the Saihan Formation and underlying strata, and the northwestward migration of the depocenters of the Erlian Formation. Based on the newly obtained detrital zircon U-Pb data and previously published paleomagnetism- and fossil-based ages, the Saihan and Erlian formations are suggested as latest Aptian–Albian and post-early Cenomanian in age, respectively, implying that the inversion in the Erlian Basin occurred in the early Late Cretaceous (Cenomanian time). Apatite fission-track thermochronological data record an early Late Cretaceous cooling/exhuming event in the basin, corresponding well with the aforementioned sedimentary, structural and chronological analyses. Combining with the tectono-sedimentary evolutions of the neighboring basins of the Erlian Basin, we suggest that the early Late Cretaceous inversional event in the Erlian Basin and the large scale tectonic transition in East Asia shared the common driving mechanism, probably resulting from the Okhotomorsk Block–East Asia collisional event at about 100–89 Ma.