We report geochronological, geochemical and isotopic data for the Mesozoic Shangshuiquan granite from the northern margin of the North China craton. The granite is highly fractionated, with SiO₂ > 74%. Occurrence of annitic biotite, high contents of alkalis (K₂O + Na₂O), Rb, Y, Nb and heavy rare earth elements, high FeOt/MgO, low contents of CaO, Al₂O₃, Ba, and Sr, and large negative Eu anomalies, makes it indistinguishable from typical A-type granites. A mantle-derived origin for the rocks of the granite is not favored because their high initial ⁸⁷Sr/⁸⁶Sr (≥0.706) and low εNd (t) (<−15) are completely different from either those of the lithospheric or asthenospheric mantle. In fact, their Sr–Nd isotopes fall within the range of Sr–Nd isotopic compositions of the Archean granulite terrains and are comparable to those of Mesozoic crustal-derived I-type granitoids in the region. Therefore, the Shangshuiquan granite is considered to be dominantly derived from partial melting of the ancient lower crust. Its parental magmas prove to be similar to I-type magmas and to have undergone extensive fractionation during its ascent. This is supported by the fact that some of the nearby Hannuoba feldspar-rich granulite xenoliths can be indeed regarded as the early cumulates in terms of their mineralogy, chemistry, Sr–Nd isotopes and zircon U–Pb ages and Hf isotopes. It is furthermore argued that some of highly fractionated granites worldwide, especially those with A-type characteristics and lacking close relationship with unfractionated rocks, may in fact be fractionated I-type granites. This suggestion can explain their close temporal and spatial associations as well as similar Sr–Nd isotopes with I-type granites. Our study also sheds new light on the petrogenesis of deep crustal xenoliths.