<p>The alkaline-saline lacustrine hydrocarbon source rocks of the Fengcheng Formation in the Junggar Basin, China, represent a new end-member type of high-quality terrestrial source rocks. The hydrocarbon generation model for these source rocks remains to be developed, which is a critical scientific issue in the study of terrestrial hydrocarbon generation theory. To fill the knowledge gap, this paper conducts a comprehensive study based on the research idea of biotic-environmental co-evolution and organic-inorganic interactions. We investigate all aspects of hydrocarbon generation by alkaline-saline lacustrine source rocks, including natural profiles, artificial profiles, kinetics, calibration of reservoir oil and gas characteristics, fluid inclusion analysis, as well as relevant geological and geochemical analyses. The hydrocarbon generation model was deeply explored and established in terms of evidences, mechanisms, connotations, and significance. Results show that such source rocks exhibit unique two peaks of hydrocarbon generation, which is dominated by oil rather than gas, with peaks of oil generation in the mature and high-mature stages, which differs from the classical Tissot hydrocarbon-generation model. This is due to the unique sedimentary environment of alkaline lakes, and their biota and inorganic minerals, which result in biotic-environmental and organic-inorganic interactions. The two main organic matter precursors, which are <i>Dunaliella</i>-like algae and cyanobacteria, provided the material for the two peaks of hydrocarbon generation. Alkali minerals affected the hydrocarbon generation process via a saponification reaction, resulting in a more protracted oil-generation window and higher oil-generation yield. The salinity and pH affected the thermal evolution of the organic matter, which retarded the evolution of hydrocarbons. The two stages of uplift during the burial of the source rocks further promoted the two peaks of hydrocarbon generation. Alkaline-saline lacustrine source rocks efficiently generate hydrocarbons, forming unique naphthenic oils and providing a resource foundation for the whole petroleum system. The unique bimodal oil generation of alkaline-saline lacustrine source rock has advanced and supplemented the theory of terrestrial oil generation, and it is the theoretical basis for large-scale oil and gas exploration in the Late Paleozoic super basin of northern Xinjiang, for reevaluating the hydrocarbon resource potential of saline lake basins across the world, and reveals the major hydrocarbon exploration field of the whole petroleum system within source rock sequences.</p>