[citation needed] The Alay Range, based on its genetic type, is a horst-anticline formation that emerged during the Hercynian orogeny.

In its western and central parts, tectonic faults run parallel to the mountain, while in the eastern section, they are oriented from south to north.

The geological structure of the range is highly complex: In some areas (such as the Kichi-Alay and Kaiyndy Mountains), these layers are intruded by granite, granodiorite, and syenite.

The foothills (including ridges and low mountains like Papan, Otuzadyr, and Katyrantoo) and the valley floors are covered with sedimentary rocks from the Paleogene, Neogene, and Quaternary periods, with thicknesses of up to 200 meters.

The Alay Range contains deposits of mercury, antimony, iron, bauxite, tungsten, bismuth, polymetals, arsenic, coal, and other minerals, some of which hold industrial significance.