Abundant well-preserved large articulated sponge fossils and isolated spicules have been reported from the Early Cambrian Hetang Formation, southern Anhui Province. This unique epifaunal fossil assemblage dominated by articulated sponge fossils is called the Xidi Sponge Fauna. The sponge fauna lived in a quiet oxygenic environment be- low the storm wave base. Bloom of phytoplankton and rapid sedimentation rate resulted in the deposition of the black shales. Sufficient food supply, lack of other competitors, abundant ecological niches, and demand for oxygen during early Cambrian were in favor of the diversification and evo- lution of large sponges in the Early Cambrian. This unique epifaunal fossil assemblage dominated by articulated sponge fossils is called the Xidi Sponge Fauna. The sponge fauna lived in a quiet oxygenic Bloom of phytoplankton and rapid sedimentation rate resulted in the deposition of the black shales. Sufficient food supply, lack of other competitors, abundant ecological niches, and demand for oxygen during early Cambrian were in favor of the diversification and evo- lution of large sponges in the Early Cambrian.