At the southernmost tip of South America, a thick pile of deep marine volcaniclastic rocks called the Yahgan Formation (Kranck, 1932) was deposited during the Early Cretaceous in a small marginal basin developed between the continent and a Pacific-facing volcanic arc (Katz, 1972; Dalziel et al., 1974). North and northwest of Tierra del Fuego, in the adjacent Austral or Magallanes basin, this unit is laterally replaced by coeval, fine-grained deposits representing basinal, slope, and platform marine settings (Winslow, 1982; Biddle et al., 1986; Wilson, 1991). The geometry of the basins changed markedly with a compressional event that produced the tectonic inversion of the marginal basin and the formation of a retroarc foreland basin in front of the rising cordillera. Closure of the marginal basin and strong deformation of the Yahgan Formation apparently occurred in the mid-Cretaceous (Halpern and Rex, 1972; Dalziel et al., 1974; Wilson, 1991); however, the timing of the opening and closing of the basin is poorly constrained because of the scarcity of fossil evidence. So far, a Late Jurassic-Neocomian age was favored for the Yahgan Formation on the basis of the record of belemnites and ammonites (Aguirre Urreta and Suárez, 1985; Halpern and Rex, 1972; Winn, 1978). Halpern and Rex (1972) mentioned the Hauterivian genus Favrella in Gardiner Island, but this record has been questioned by Thomson et al. (1982) who considered the ammonite imprint to be some kind of heteromorph. Also, the timing of the transition from marginal to foreland basin is not well documented. On the basis of indirect evidence the initiation of the foreland basin stage was assigned to the Albian in the Ultima Esperanza region of Chile (Wilson, 1991) and to the Late Cretaceous in northern Tierra del Fuego (Biddle et al., 1986). Recent field work by the authors in the area of No Top Mountain-Moat River, Tierra del Fuego (Figure 1), has resulted in the first record of diagnostic late Albian inoceramids in the Yahgan Formation. The objective of this note is to document this fauna and to briefly discuss its implications on the control of the timing of the transition from marginal to foreland basin in the area.