Three distinct but overlapping dinosaur-dominated faunas characterize the Upper Cretaceous Djadokhta, Baruungoyot and Nemegt formations of the Nemegt Basin of Mongolia. Documented faunal differences cannot be explained easily by temporal succession, but can be understood in the light of physical processes controlling life, death, and burial of taxa. The stratigraphy of the Gobi Desert region records tectonically driven geometries, clearly documenting preservational processes different than those acting in most other dinosaur-dominated beds worldwide. Small, asymmetric tectonic grabens were filled with Upper Cretaceous, dinosaur bearing deposits showing asymmetric distributions of facies, here termed Lithobiotopes. The water-lain fluvial and alluvial plain facies of the Nemegt Lithobiotope supported and preserved a fauna dominated by gigantic dinosaurs, but had a preservational bias against smaller animals. The Nemegt passed laterally into interdune facies of the Baruungoyot Lithobiotope, which represented a hostile environment for large species, but preserved smaller animals. This in turn passed laterally into the aeolianite facies of the Djadokhta Lithobiotope, which is characterized by remains of small dinosaurs and a rich fauna of other animals. The Nemegt Gobi Basin can be visualized as an oasis with a central pond supplied with water from ephemeral channels and surrounded by a semi-arid alluvial plain and dune fields.