The D'Entrecasteaux Zone (Southwest Pacific) is an arched submarine horst- and graben structure, which extends from the northern end of the New Caledonia ridge to the western border of the New Hebrides island arc. A review of the bathymetry, seismic-reflection data, paleomagnetism, gravimetry, seismology and DSDP data available for this area is combined with a study of basaltic samples dredged along the horsts of this regional fracture zone. These basalts show strong petrographic and chemical affinities with MORB. Their fissiontrack ages range between 56 Ma (Paleocene-Eocene boundary) and 36 Ma (Eocene-Oligocene boundary). It is suggested that the D'Entrecasteaux Zone represents the northern arcuate extension of the northeast-dipping Eocene subduction/obduction zone, located along the New Caledonia/Loyalty Islands ridge, while its present morphology appeared from post-obduction extensional movements, resulting in a progressive uplift of basaltic ocean floor since Middle Miocene times