<p>Shale gas is now recognized as one of the most important unconventional hydrocarbon resources, primarily stored in micropores, particularly within the pores of clay minerals and organic matter. A clear understanding of unconventional hydrocarbon and CO₂ sequestration in shale reservoirs is necessary for reducing the energy deficit. The present article reviews literature on source rock potential and CO₂ sequestration in shale for the purpose to evolution of evolving source rock characteristics and the CO₂ sequestration possibility in the shales of the Assam Arakan basin. The objective of this article is to discuss potential, unconventional hydrocarbon formations within the basin using rock eval data. The available literature indicates that studies on the evolution of source rock characteristics and CO₂ sequestration potential in the shales of northeastern India have been conducted on sporadic and very limited samples. Therefore, an integrated study is required, including organic petrography, organic geochemistry, inorganic geochemical studies, stable isotopes, and CO₂, CH_4, and N₂ adsorption capacity to characterize the shale formations to assess unconventional hydrocarbon and CO₂ sequestration potential within the Assam Arakan basin.</p>