This chapter provides an overview of Rajasthan lignite deposits that can use as the source rock for hydrocarbons. The investigation focuses on the geochemistry and petrology of each lignite-bearing seam from the Bikaner-Nagaur basin (Gurha, Matasukh, and Barsingsar mines), and Barmer (Giral and Kapurdi mines), to assess the potential of their source rocks for hydrocarbon generation. Lignite seams of the Bikaner-Nagaur and Barmer basin belong to Late Paleocene to Early Eocene age Palana and Akli Formations, respectively. Huminite predominates in all the investigated seams, followed by inertinite and liptinite maceral, with a significant content of mineral matter. The dominance of huminite entails Rajasthan lignite mainly containing type-III kerogen and can yield gaseous hydrocarbons. Significant content of liptinite in some seams of Gurha, Matasukh, and Giral indicates that they are capable of generating liquid hydrocarbons also. The investigated seams have huminite reflectance values ˂ 0.4, indicating that the examined samples are of low-rank B lignites and contain immature organic matter (OM). The geochemical results reveal that the Rajasthan lignites are thermally immature, containing type-III and mixed type-II-III kerogen. This suggests the lignites have a greater potential for gas and some potential for liquid generation. The geochemical data further suggest Rajasthan lignites can be an excellent source rock for hydrocarbon production.