The South Portuguese Zone (SPZ) constitutes the southernmost segment of the Variscan Iberian Massif. It is bounded to the north by the Beja-Acebuches Ophiolitic Complex and related accretionary wedge. To the south lie the Iberian Pyrite Belt (IPB) and flysch deposits forming the southern extent of the zone. Structural analysis within the Spanish side of the SPZ supports continuous south propagating deformation, evolving from early synmetamorphic thrusting in the internal zone to thin-skinned tectonics in the southern external domain. The accretion of the SPZ to the Ossa Morena Zone is also witnessed by the presence of various m¿langes, observed throughout the investigated area. Part of the m¿langes observed in the IPB are related to the volcanics and mineralizations setting. A key point to understand the IPB mineralizations genesis is to constrain the volcanogenic model. One underestimated feature is the large amount of submarine calc-alkaline ignimbritic facies, implying the presence of caldera structures within the province. Such correlation between caldera environment and ore deposits strongly suggests that the IPB developed in a continental arc. Our geodynamic model proposes an early north directed subduction associated with the obduction of the oceanic crust toward the south. Southward, this episode is immediately followed by the development of the accretionary prism, while farther south, a second subduction zone responsible for the arc setting of the IPB initiates. Subsequent Visean continental collision is associated with the deposit of the south propagating flysch and the present geometry of the SPZ.