Field, petrographic, lithogeochemical, LA-ICP-MS in situ U-Pb zircon geochronology, and Nd and Sr isotopic data were used to determine the geologic evolution, timing of volcanism and tectonic setting of the Mundo Novo greenstone belt (MNGB) including nearby units, such as the basement and younger granitic rocks in the eastern Sao Francisco Craton (NE Brazil). The basement of the greenstone belt corresponds to the Gaviao Block, which comprises tonalite-trondhjemite-granodiorite orthogneisses, migmatites and subordinate metarhyolites and metagranites. The MNGB is divided into three lithological sequences: (i) the lowermost unit is composed of metakomatiites; (ii) the middle unit is composed mainly of metabasalts, metadacites and metasedimentary chemical rocks; and (iii) the uppermost unit is composed of metasedimentary siliciclastic rocks. Additionally, two Rhyacian-Orosirian granitic plutons occur in the area, the Areia Branca and Jequitiba metagranites. U-Pb zircon data from the Miguel Calmon and Fazenda Coqueiro metagranites in the Gaviao Block yield crystallization ages of 3355 +/- 16 Ma and 3227 +/- 23 Ma, respectively, and both metagranites were derived from the lower continental crust based on low Sr-87/Sr-86, values (0.699 and 0.705, respectively) and negative values of epsilon(Nd(t)) (-3.7 and -3.6, respectively). The 2595 +/- 21 Ma U-Pb zircon crystallization age of the metadacites allowed the determination of the timing of volcanism in the middle sequence of the MNGB. The 2106 +/- 71 Ma and 1975 +/- 36 Ma U-Pb zircon crystallization ages for the Areia Branca and Jequitiba metagranites, respectively, which are both interpreted as derived from crustal protoliths based on high Sr-87/Sr-86, values (0.744 and 0.730, respectively) and negative values of epsilon(Nd(t)) (-7.7 and -6.5, respectively), record a Rhyacian- Orosirian tectonothermal event that affected the MNGB and the adjoining region. The whole-rock geochemical data in tectonic discrimination and multielement diagrams show that the volcanic rocks of the MNGB formed in island arc and back-arc basin settings related to the oceanic crust. Therefore, the following five stages are proposed for the tectonic evolution of the study region: stages (i) and (ii) were characterized by the establishment of the TTG basement by 3.35 Ga, when the Miguel Calmon granite was consolidated, followed by a rifting that formed the rhyolites, and subsequent granite formations occurred at 3.22 Ga (Fazenda Coqueiro granite formation), followed by the abort of the rift and a closure event. The volcanism during stage (iii) at 2.59 Ga in the MNGB occurred in island arc and back-arc basins in the oceanic crust between Archean cratonic blocks, and stages (iv) and (v) between 2.10 Ga and 1.97 Ga represent two stages of a progressive collision event in which the oceanic crust was compressed between the Gaviao, Mairi, Jequie and Serrinha blocks and the Itabuna-Salvador-Curaca Belt from the eastern part of the Sao Francisco Craton. The collisional event of stages (iv) and (v) was coeval with the Rhyacian-Orosirian formation of granites and basins such as that where the uppermost siliciclastic sequence of the MNGB was deposited.