This work focuses on well-exposed Lower Triassic sedimentary rocks in the area of Torrey (south-central Utah, USA). The studied Smithian deposits record a large-scale third-order sea-level cycle, which permits a detailed reconstruction of the evolution of depositional settings. During the middle Smithian, peritidal microbial limestones associated with a rather low-diversity benthic fauna were deposited seaward of the tidal flat siliciclastic red beds. Associated with siliceous sponges, microbial limestones formed small m-scale patch reefs. During the late middle to late Smithian interval, the sedimentary system is characterized by tidal flat dolostones of an interior platform, ooid-bioclastic deposits of a tide-dominated shoal complex, and mid-shelf bioclastic limestones. Microbial deposits, corresponding to sparse stromatolites formed in the interior platform, are contemporaneous with a well-diversified marine fauna living in a seaward shoal complex and mid-shelf area. The nature and distribution of these Smithian microbial deposits are not related to any particular deleterious environmental condition, highlighting that observed patterns of biotic recovery after the end-Permian mass extinction were directly influenced by depositional settings. Facies evolution and stratal stacking patterns allow us to identify large, medium and small-scale, as well as elementary depositional sequences. Large- and medium-scale sequences are consistent with sea-level changes, whereas small-scale and elementary sequences are better explained by autocyclic processes.