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The Istanbul Zone (NW Turkey) forms the eastward extension of Avalonia and was subjected to deformation, uplift and erosion for a time period of 40–50 Ma following the collision with the Sakarya Zone during Early to Late Carboniferous. This paper deals with the petrology and age of the volumetrically minor basic and acidic volcanism at the lowermost horizons of Middle Permian continental red beds, which are overlain by Lower Triassic marine sedimentary rocks in the Kocaeli Peninsula. The volcanic activity is represented mainly by amygdaloidal basalt, rhyolite and minor trachydacite. The amygdaloidal basalt was derived from near-primary middle-K calc-alkaline mantle melts with negligible crystal fractionation. On the other hand, the rhyolite and trachydacite compositionally resemble A2-type rhyolites and underwent low-pressure crystal fractionation as indicated by the presence of a significant Eu anomaly. Initial ɛNd values of amygdaloidal basalt range from 0.0 to 1.5 and those of rhyolite-trachydacite are between −0.4 and −3.4. Amygdaloidal basalt and rhyolite-trachydacite are not directly related to each other by crystal fractionation. Amygdaloidal basalt probably represents the product of the near-primary mantle melts from low-degree melting of a spinel peridotitic source, and the rhyolite-trachydacite originated from highly-fractionated products of basic magmas that are slightly more alkaline than amygdaloidal basalt. However, basic and intermediate products of alkaline basic magmas are unknown in this region to date. U-Pb dating of zircons from a rhyolite sample yielded an igneous crystallization age of 261 ± 3 Ma (2σ), suggesting that the date of deposition of the continental red beds goes back to the latest Middle Permian. Based on the transgressive nature of the Permian-Triassic sequence that starts from the Middle Permian continental red beds and grades into Lower Triassic marine deposits, we suggest that the volcanism likely occurred in an extensional setting. This extension was concurrent with the northward subduction of the Palaeo-Tethys beneath the Sakarya and Istanbul zones after the Variscan orogeny. Therefore, the latest Middle to Late Permian volcanism might have occurred during the initial stage of a back-arc extensional setting [ABSTRACT FROM AUTHOR]