In this study, source rock characteristics and lateral changes in thermal maturity of the Sargelu Formation (Middle Jurassic) in three outcrops were studied. The formation’s outcrops can be found in the High Folded, and Imbricated Zones of Iraqi Tectonic Division. In order to achieve the main goals of this study, the Gas chromatography mass spectrometry (GC-MS) and Rock-Eval pyrolysis were performed on the organic matter (OM) of the Sargelu sediments. Pristane/Phytane ratios for analyzed samples indicate reducing conditions (anoxic) during sedimentation. Moreover, based on  C29/C30 hopanes ratios the sediments of the Sargelu Formation associated with clay- rich source rock. Biomarker thermal maturity parameters display that all samples are thermally in Oil Window at least. The biomarker findings reveal that the samples of Walasimt and Barsarin are seem more mature than Banik section. The values for TOC% of the Sargelu Formation may show Excellent, Very Good, and Poor quality source rock. The Pyrolysis executed for studied samples revealed the kerogen in Banik section belongs to Types II and III (Probably Oil/Gas- prone), while Barsarin and Walasimt sections obtained Types III-IV Kerogen (Gas- prone). Pyrolysis parameters suggested Early Mature Stage in Banik, While Overmature in Barsarin and Walasimt. The data also shows that organic matter of the Sargelu Formation in Banik section is in Oil Widow, while in Barsarin and Walasimt is in Gas Window.