Nephrite is a very precious gemstone material. As a non-renewable resource, the discovery of new nephrite deposits and the study of the genesis of nephrite have aroused great interest. A new occurrence of nephrite known as Xinyu nephrite was discovered in Xinyu Country, Jiangxi province, China. Field investigations reveal that nephrite appears in a contact zone between the Mengshan composite granitic pluton and Permian carbonate rock. The carbonate rock is calcic marble that underwent diopsidization and tremolitization. Nephrites have a light yellow-green color, weak greasy luster, are slightly-translucent to translucent, and are fine-grained. Their refractive index (RI) ranges from 1.60 to 1.61, and their specific gravity (SG) value ranges from 2.90 to 2.91, falling within the range of nephrites from Xinjiang, China. Their Mohs hardness (Hm) ranges from 5.78 to 5.83. Petrographic observations and electron probe micro analyzer (EPMA) data indicated that analyzed nephrites mainly comprise tremolite, with minor diopside, calcite, quartz, and apatite. Tremolite has a ratio of Mg/(Mg + Fe2+) greater than 0.99. The tremolite grains show microscopic fibrous-felted and columnar textures. Scanning electron microscope (SEM) images show some tremolite fibers interwoven in different crystallographic orientations, and some arranged in parallel. Fourier transform infrared and Raman spectroscopy features reveal the bands of minerals typical for nephrite composition. The petrographic characteristics and geological background of the Mengshan area indicate that nephrite formed through a replacement of calcic marble, which differs from the two known types (D-type: dolomite-related; S-type: serpentinite-related). Mineral replacements were common in nephrite, including diopside by tremolite, calcite by tremolite, and recrystallization of coarse by fine tremolite grains. The discovery of Xinyu nephrite occurrence complements the resource and provides an updated case for the in-depth study of the diversity of nephrite deposits.