We report U-Pb dates and Lu-Hf isotope data, obtained by LAM-ICPMS, for zircons from metamorphic rocks of the Setesdalen valley, situated in the Telemark block south of the classic Telemark region of southern Norway. The samples include infracrustal rocks from the metamorphic basement, metaigneous rocks and metasediments from the Byglandsfjorden supracrustal cover sequence, and metaigneous rocks which intruded the whole succession. The main crustal evolution took place from 1,550-1,020 Ma, beginning with the emplacement of juvenile tonalitic melts; the contribution of older crustal material increased with time. Around 1,320 Ma, further addition of juvenile material occurred, involving both mafic and felsic melts, metamorphism and deformation. Acid magmas with high FeO*/MgO were intruded at 1,215 Ma, coinciding with underplating elsewhere in South Norway. The period starting at 1,215 Ma is represented by supracrustal rocks, principally metarhyolites with minor mafic material and immature sediments of the Byglandsfjorden Group. The crust generation processes ended with the intrusion of diorites and granodiorites at 1,030 Ma, late in the Sveconorwegian orogeny. Regional processes of metamorphism and deformation (around 1,290 and 1,000 Ma) can be related to the assembly of Rodinia.