In order to consolidate then reserve of stable oil and gas production, significant achievements have been made in exploration around the Western Ordos Basin in recent years. A study of the characteristics of the source rock of the Yanghugou Formation was conducted with the aim of systematically assessing its gas resource potential. Firstly, the planar distribution pattern of the source rock in the Yanghugou Formation was characterized using drilling, logging, and field outcrop data in the study area. Based on this, various geochemical indicators of the source rock were tested, and the source rock of the Yanghougou Formation was systematically evaluated in terms of organic matter type, maturity and abundance. Then, the accumulation combinations was summarized. The Yanghugou Formation in the Western Ordos Basin develops two types of hydrocarbon source rock: coal and argillaceous rock formed in the marine and terrestrial transitional environment. To the west of the Banyanjing Fault, thick coal and argillaceous rock have developed; the thickness of the source rock rapidly thins from west to east, following the change trend of the formation thickness. The main types of kerogen are type II2 and type III. Indicators such as the vitreous reflectivity and the peak temperature of thermal decomposition indicate that the organic material is mainly in the high–over maturity phase. The total organic carbon content and hydrocarbon generation potential suggest that the argillaceous rock belongs to the poor-to-mid-grade source rock, while the coal belongs to the moderate-grade source rock. Based on the configuration relationship between source rocks and reservoirs, three types of accumulation combinations have been summarized. For the Yanghugou Formation in the Western Ordos Basin, the composition and characteristics of the source rock were studied based on the combinations and the geochemical indicators, providing a sufficient geological basis for subsequent exploration in this area.