Different sequence types were formed in various stages associated with tectonic variations and changes of the sediment supply in the rift‐related Wenchang Formation. Based on cores, wire logging, and seismic data, the sequence stratigraphy, depositional systems, and controls on the depositional systems of the Wenchang Formation in the Lufeng Depression were studied. The Wenchang Formation developed braided‐delta, lacustrine, fan‐delta, and nearshore subaqueous fan deposits and represents one first‐order sequence and three second‐order sequences, indicating three stages of tectonostratigraphic evolution. (a) The early syn‐rift sequence (SSQ1) developed fan‐delta and shallow lacustrine deposits. (b) The rift climax sequence (SSQ2) contains the early rift climax systems tract and the middle‐late rift climax systems tract. The early rift climax systems tract formed primarily braided‐delta and shallow lacustrine deposits, whereas the middle‐late rift climax systems tract developed mostly semi‐deep to deep lacustrine deposits. (c) The late syn‐rift sequence (SSQ3) developed braided‐delta and shallow lacustrine deposits. In the SSQ3 transgressive systems tract, retrogradational parasequence sets developed along the southern dip slope because of the weak sediment supply from the Huilu low uplift, whereas westward aggradational–progradational parasequence sets developed along the long axis because of the stronger sediment supply from the Lufeng eastern low uplift. Tectonic activity primarily controlled the early syn‐rift and rift climax deposition; syn‐depositional faults formed the transfer zones and slope break zones. Three types of transfer zones for sedimentary transport into the basin were distinguished, including synthetic approaching transfer zones, strike ramps, and collateral transfer zones. Three types of slope break zones were also recognised, including fault scarp zones controlling fan deltas and nearshore subaqueous fans, fault terrace zones controlling low‐stand fan deltas, and antithetic fault terrace dip‐slope zones controlling braided deltas.