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Increasing exploration interest in oil and gas hosted by early Cambrian strata has focused research efforts on early Cambrian sandstones. The origin of phosphorus and the paleoenvironment of phosphorus-bearing sandstones from the Xinji Formation are discussed in this paper. X-ray diffraction, optical microscopy, grain size analysis, total organic carbon, and the concentrations of major, trace, and rare earth elements (REEs) are analyzed in this work. The sandstones are mostly sublitharenite with calcareous cement. The content of the sandstone samples is quartz (39.8%–73.9%), with illite (7.9%–27.6%) and calcite (4.5%–29%). The mineral particles of sandstone samples are mainly well sorted with a fine particle size, suggesting strong paleohydrodynamic force. The value of SiO2 is 37.69%–78.19%, followed by Al2O3 (6.11%–13.67%). Compared with upper continental crust, the boron in the sandstone samples is relatively enriched, whereas Sc, Sr, and Ba are relatively depleted. The ΣREE content is 124.46–323.99 ppm. Phosphorus is of biogenic origin and enriched by upwelling current. The source of the Xinji Formation sandstone samples was mainly a mixture of sedimentary rock, granite, and alkali basalt, with the provenance of terrestrial clastic materials. The sandstone was deposited under oxic conditions and a warm and humid paleoclimate with saline to brackish features on a passive continental margin. Phosphorus occurring in sandstones is sensitive to paleoclimate and can be used as an indicator to judge paleoclimate, as it is more enriched in warm and humid weather. [ABSTRACT FROM AUTHOR]