Abstract: This is an article in the field of earth sciences. According to insufficient research on the distribution characteristics, genetic mechanism, lithium extraction technology, and economic benefits of high-temperature geothermal water lithium resources in Southern Xizang. Through the analysis of plate tectonics, the test of geothermal water components, the comparative analysis of the applicability of lithium extraction technology in salt lakes, and the establishment of an economic evaluation model for lithium extraction from geothermal water, the following achievements have been achieved: (1) The geothermal water lithium in Southern Xizang is mainly distributed on both sides of the Yarlung Zangbo River deep fault zone and its southern region, Lithium-rich granite wall rock leaching and magmatic hydrothermal solution, it provides rich lithium sources for the formation of lithium-rich geothermal water. (2) In accordance with the characteristics of low concentration and low magnesium/lithium ratio in geothermal water lithium, the extraction method and precipitation method are selected to extract and utilize lithium in geothermal water. (3) Take geothermal well in the Gudui geothermal field as an example, with a lithium concentration of 23.5 mg/L in geothermal water, and the extraction process is used to extract lithium, establishing an economic evaluation model, using cash flow method to evaluate the economy, and the economic evaluation results showed that when the price of lithium carbonate is not less than 250000 yuan/t, the extraction of lithium from geothermal water has good economic benefits.