Eutyrannosaurians were large predatory dinosaurs that dominated Asian and North American terrestrial faunas in latest Cretaceous times. These apex predators arose from smaller-bodied tyrannosauroids during the 'middle' Cretaceous that are poorly known owing to the paucity of fossil material^1-3. Here we report on a new tyrannosauroid, Khankhuuluu mongoliensis gen. et sp. nov., from lower Upper Cretaceous deposits of Mongolia that provides a new perspective on eutyrannosaurian origins and evolution. Phylogenetic analyses recover Khankhuuluu immediately outside Eutyrannosauria and recover the massive, deep-snouted Tyrannosaurini and the smaller, gracile, shallow-snouted Alioramini as highly derived eutyrannosaurian sister clades. Khankhuuluu and the late-diverging Alioramini independently share features related to a shallow skull and gracile build with juvenile eutyrannosaurians, reinforcing the key role heterochrony had in eutyrannosaurian evolution. Although eutyrannosaurians were mainly influenced by peramorphosis or accelerated growth^4-10, Alioramini is revealed as a derived lineage that retained immature features through paedomorphosis and is not a more basal lineage as widely accepted^11-19. Our results reveal that Asian tyrannosauroids (similar to Khankhuuluu) dispersed to North America, giving rise to Eutyrannosauria in the mid-Late Cretaceous. Eutyrannosauria diversified and remained exclusively in North America until a single dispersal to Asia in the latest Cretaceous that established Alioramini and Tyrannosaurini. Stark morphological differences between Alioramini and Tyrannosaurini probably evolved due to divergent heterochronic trends-paedomorphosis versus peramorphosis, respectively-allowing them to coexist in Asia and occupy different ecological niches.