The Tertiary volcanic rocks of the southern part of the Pannonian Basin are related to a sequence of tectonic events that occurred along the northern margin of the Dinarides when subduction ceased and after uplift of the region in middle Eocene time. The oldest rocks are andesites and dacites erupted during an Egerian to Eggenburgian marine transpression phase. In early Miocene time (about 17 Ma), rifting started, probably caused by the rise of the mantle, resulting in E-W extension and strike-slip faulting leading to formation of the Pannonian Basin. The initial rifting was accompanied by trachyandesitic volcanism of Karpathian age, followed by Badenian-age (15 to 13 Ma) volcanic activity producing basalts, andesites, and dacites. During these volcanic phases the Pannonian Basin, or the Paratethys, probably was periodically connected with the Mediterranean Sea. The final period of volcanism (about 9 to 7 Ma) produced alkalic basalts and basalts and occurred in fresh-water environments. These volcanic rocks have had a complex petrological evolution, related to an active continental margin. Egerian-Eggenburgian andesites and dacites can be explained by upper crustal assimilation with fractional crystallization (ACF) of primary basalt magma. The three younger associations originated by partial melting of rocks from both the upper mantle and the lower crust. Their evolution was accompanied by crustal contamination.