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The Nyainrong microcontinent carries key information about the ongoing evolution of the central Tibetan Plateau. The 2021 Mw 5.7 Nagqu earthquake is the largest instrumentally recorded event inside this microcontinent, which provides an ideal opportunity to elucidate the influence of this ancient microcontinent on the seismogenic mechanisms, stress heterogeneity and strain partitioning across the Tibetan Plateau. Here, we constrain the seismogenic fault geometry and distributed fault slip using Interferometric Synthetic Aperture Radar (InSAR) observations. By using the regional focal mechanism solutions, we invert the stress regimes surrounding the Nyainrong microcontinent. Our analysis demonstrates that the mainshock was caused by a normal fault with a comparable sinistral strike-slip component on a North-West dipping fault plane. The Nyainrong microcontinent is surrounded by a dominant normal faulting stress regime to the northeast and a dominant strike-slip stress regime to the southwest. Moreover, the clockwise rotation of the maximum horizontal stress (SHmax) from the southwest to the northeast is ~20°. This indicates that the Nyainrong microcontinent is involved in the mainshock occurrence as well as regional stress heterogeneity, and strain partitioning. Our results highlight the significance of the ancient microcontinent in the tectonic evolution of the Tibetan Plateau. [ABSTRACT FROM AUTHOR]