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The Kaiyuan tectonic mélange makes up the western part of the Kaiyuan–Yanji Accretionary Complex Belt, NE China, and there has been a long‐standing controversy about its age and tectonic setting. In this paper, we present new zircon U–Pb ages and geochemical data for the mafic rocks of the Lujiapuzi Formation in the Kaiyuan tectonic mélange, and these data provide insights into the tectonic setting during the late Paleozoic and the evolutionary history of the Paleo‐Asian Ocean in the eastern segment of the Central Asian Orogenic Belt (CAOB). SHRIMP U–Pb dating of zircons from samples of albite–actinolite schist and amphibolite yielded a crystallization age of 258 ± 5.5 Ma for the protoliths, suggesting that the protoliths formed during the late Permian. The albite–actinolite schists and amphibolites have similar geochemical characteristics, and they represent metamorphosed basaltic volcanic rocks. Major, rare earth and trace element data show that the mafic rocks have a close affinity with mid‐ocean ridge basalt. REE petrogenetic modelling indicates that the primary magma was generated through the partial melting of a mixed garnet‐ and spinel‐bearing mantle source, and assimilated crustal material and underwent crystal fractionation during ascent. The geochemical features and inherited/xenocrystic zircons in the mafic samples indicate that they formed in a tectonic setting similar to the back‐arc basin. These new findings, together with other previously published data, indicate that the Paleo‐Asian Ocean still existed in the eastern segment of the CAOB during the late Permian to Early Triassic. The Kaiyuan tectonic mélange formed during the Middle Triassic, and its formation may represent the timing of final closure of the Paleo‐Asian Ocean. [ABSTRACT FROM AUTHOR]