Although it is originally considered that it belongs to the tribe Ovibovini, close to the muskox, Ovibos moschatus,[1] a study in 2022 posits Tsaidamotherium as a giraffoidean genus in the family Prolibytheriidae together with Prolibytherium and Discokeryx.

The scrappy remains of the first species, T. hedini, were discovered by Dr Hedin at the Qaidam Basin during the Sino-Swedish Scientific Expedition to Northwest China during the 1930s.

[2][1] Partial remains of two individuals were discovered in the Liushu Formation within the Linxia Basin in Hezheng County, Gansu, in 2004, and were described as T. brevirostrum in 2013.

[1] The skulls of both species had large nasal cavities, suggesting the living animals had broad, vaulted muzzles like those of the takin or Saiga antelope.

During the late Miocene, the remains of the fossil horse Hipparion suggests that the Linxia and Qaidam basins were hot and semi-arid savanna environments.