The distribution of the Late Mesozoic volcanic arc in the South China Sea (SCS) continental margin has long been a controversial topic due to its significance in understanding the transition mechanism of a margin from subduction to extension. Here a comprehensive analysis was conducted in the margin using reprocessed magnetic data, newly collected drilling/dredging samples, depositional environment, and deformation style inferred from multichannel seismic profiles to jointly constrain the possible distribution of the Mesozoic volcanic arc. From the map of reduced‐to‐the‐pole magnetic anomaly, several high‐positive magnetic anomaly belts can be discriminated, which cross the central Pearl River Mouth Basin, extend southwestward to the Zhongsha (Macclesfield Bank) and Xisha Islands (Paracel Islands), and distribute discontinuously around the southwest subbasin. Geophysical analysis shows that these belts have similar amplitudes and magnetic depths to known volcanic arcs, such as the Luzon, Cagayan, and Sulu arcs. Furthermore, the high‐amplitude positive magnetic anomaly belts coincide with the distribution of Late Mesozoic arc‐like granites, intermediate rocks, and agglomerates, suggesting that the belts possibly originated from the existence of Late Mesozoic volcanic arc. Accretion and compression environment located in front of the inferred arc provides independent supports to our interpretation. Results indicate that the southwest part of the arc is distributed on both sides of the southwest SCS subbasin, whereas the northeast part remains nearly in its original location, further suggesting that the breakup locations for the SCS margin might be the volcanic front/forearc in the northeast and the arc in the southwest during the opening of the SCS basin.