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The Cambrian Series 3 Zhangxia Formation in Shandong Province, North China, includes small-scale lithistid sponge-microbial reefs. The lithistid sponges grew on oolitic and bioclastic sediments, which were stabilized by microbial activities. The relative abundances of microbial components (e.g. calcimicrobe Epiphyton and stromatolites) vary among the reefs. However, the microbial components commonly encrusted or bound the lithistid sponges, formed remarkable encrustations on the surfaces of the sponges. Epiphyton especially grew upward and downward. The lithistid sponges thus provided substrates for the attachment and development of microbes, and the microbes played essential roles as consolidators, by encrusting reef-building sponges. Additionally, the lithistid sponges were prone to degradation via microbial activities and diagenetic processes, and were thus preserved as micritic bodies, showing faint spicular networks or abundant spicules. Such low preservation potential within the reef environment obscured the presence of the sponges and their widespread contribution as reef-building organisms during the Cambrian. During the prolonged interval after the demise of archaeocyaths, purely microbial reefs, such as stromatolites and thrombolites have been considered to be the principal reef builders, in association with rare lithistid sponge-microbial associations. However, recent findings, including those from Shandong Province and Korea, suggest that the lithistid sponge-bearing reefs were more extensive during the Epoch 3 to the Furongian than previously thought. These lithistid sponge-microbial reefs were precursors of the sponge-microbial reefs that dominated worldwide in the Early Ordovician. [ABSTRACT FROM AUTHOR]