The giant Yulong porphyry Cu (‐Mo‐Au) deposit was formed in a post‐collisional setting in eastern Tibet, which is associated with Eocene potassic to ultrapotassic felsic intrusive rocks. The origin of the Yulong potassic intrusion remains highly disputed. Hence, we present new zircon U–Pb ages, whole‐rock geochemistry and zircon Lu‐Hf isotopes for the Yulong intrusion. Zircon U–Pb dating from the porphyritic monzogranite and porphyritic quartz monzonite yield ages of 41.1 ± 0.2, 40.8 ± 0.1 and 40.5 ± 0.2 Ma, respectively. Samples from the Yulong intrusion exhibit high K2O (4.13–4.85%), and high K2O/Na2O (1.00–1.25), [La/Yb]n (30.37–40.37) and Sr/Y (57.86–87.68) ratios, low Mg#, MgO, Ni, and Cr contents, enrichment in light rare earth elements (LREEs) and depletion of high‐field‐strength elements (HFSEs, e.g., Nb, Ta, and Ti). Zircon grains from this study have mostly positive εHf(t) values (+1.6 to +2.9), and crustal model ages (TDMC) of 0.90–1.19 Ga. These features suggest that the Yulong intrusion is derived from a thickened juvenile lower crust. During the Permian to late Triassic, Jinshajiang‐Ailaoshan Palaeo‐Tethyan oceanic subduction from the eastern margin of the North Qiangtang produced metasomatic domains within the continental lithospheric mantle and lower crust. During the late Eocene, the continuing India‐Asia continental collision may have preferentially overthickened the crust. Convective removals in the lower part of the thickened lithosphere resulted in the hot asthenosphere upwelling along the Jinshajiang‐Ailaoshan Suture, which induced the partial melting of the residual metasomatized lithospheric mantle, as well as the thickened lower crust in the Eocene, which formed the Yulong intrusion.