Lijiang-Daju fault, the seismogenic fault of the 1996 Lijiang M=7.0 earthquake, can be divided into Lijiang-Yuhu segment in the south and Yuhu-Daju segment in the north. The two segments show clear difference in geological tectonics, but have the similar dynamic features. Both normal dip-slip and sinistral strike-slip coexist on the fault plane. This kind of movement started at the beginning of the Quaternary (2.4~2.5 Ma B.P.). As to the tectonic types, the detachment fault with low angle was developed in the Early Pleistocene and the normal fault with high angle only after the Mid-Pleistocene (0.8 Ma B.P.). Based on the horizontal displacements of gullies and the vertical variance of planation surfaces cross the Lijiang-Daju fault at east piedmont of Yulong-Haba range, the average horizontal and vertical slip rates are calculated. They are 0.84 mm/a and 0.70 mm/a since the Quaternary and 1.56 mm/a and 1.69 mm/a since the Mid-Pleistocene. The movements of the nearly N-S-trending Lijiang-Daju fault are controlled not only by the regional stress field, but also by the variant movement between the Yulong-Haba range and Lijiang basin. The two kinds of dynamic processes form the characteristics of seismotectonic environment of occurring the 1996 Lijiang earthquake. Lijiang-Daju fault, the seismogenic fault of the 1996 Lijiang M = 7.0 earthquake, can be divided into Lijiang-Yuhu segment in the south and Yuhu-Daju segment in the north. The two segments show clear difference in geological tectonics, but have the the similar to dynamic features. Both normal dip-slip and sinistral strike-slip coexist on the fault plane. This kind of movement started at the beginning of the Quaternary (2.4-2.5 Ma BP). As to the tectonic types, the detachment fault with low angle was developed in the Early Pleistocene and the normal fault with high angle only after the Mid-Pleistocene (0.8 Ma BP). Based on the horizontal displacements of gullies and the vertical variance of planation surfaces cross the Lijiang-Daju fault at east piedmont of They are 0.84 mm / a and 0.70 mm / a since the Quaternary and 1.56 mm / a and 1.69 mm / a since the Mid-Pleistocene. The movements of the nearly NS-trending Lijian g-Daju fault are controlled not only by the regional stress field, but also by the variant movement between the Yulong-Haba range and Lijiang basin. The two kinds of dynamic processes form the characteristics of seismotectonic environment of occurring the 1996 Lijiang earthquake.