The present study aims to investigate the origin, type, thermal maturity and hydrocarbon generation potential of organic matter and paleo-depositional environment of the Early Paleocene (Danian) Hangu Formation outcropped in the Kala-Chitta Range of Northwest Pakistan, Eastern Tethys. Organic-rich shale and coal intervals were utilized for geochemical analyses including TOC (total organic carbon) and Rock–Eval pyrolysis coupled with carbon (δ¹³Corg) and nitrogen (δ¹⁵Norg) stable isotopes. The organic geochemical results showed that the kerogen Type II (oil/gas prone) and Type III (gas prone) dominate the investigated rock units. The TOC (wt%) and S₂ yield indicate that the rock unit quantifies sufficient organic matter (OM) to act as potential source rock. However, the thermal maturity T_max°C marks the over maturation of the OM, which may be possibly linked with the effect attained from nearby tectonically active Himalayan Foreland Fold-and-Thrust Belt system and associated metamorphosed sequences. The organic geochemical analyses deciphered indigenous nature of the OM and resultant hydrocarbons. The δ¹³Corg and δ¹⁵Norg stable isotopic signatures illustrated enrichment of the OM from both marine and terrestrial sources accumulated into the Hangu Formation. The Paleo-depositional model established using organic geochemical and stable isotopic data for the formation supports its deposition in a shallow marine proximal inner shelf environment with prevalence of sub-oxic to anoxic conditions, a scenario that could enhance the OM preservation. Overall, the formation holds promising coal and shale intervals in terms of organic richness, but due to relatively over thermal maturation, it cannot act as an effective source rock for liquid hydrocarbon generation and only minor amount of dry gas can be expected. In implication, the results of this study suggest least prospects of liquid hydrocarbon generation potential within Hangu Formation at studied sections.