Through the field measurement and microscopic observation, 10 microfacies types have been recognized from the layers of 78 to 91 in the Middle Triassic Upper Member of Guanling Formation, where the Panxian Fauna occurs. By comprehensive microfacies analyses, it is shown that the sedimentary facies of the fossil-bearing beds change upward from open-carbonate platform to restricted carbonate platform and to tidal channel. It is consistent with the changes of the body size of the marine reptiles. According to the analysis of microfacies types and petrographic characteristics, the Panxian Fauna probably lived in a restricted carbonate platform.