Jordan's energy sector faces significant challenges due to rising fuel prices, making the exploration of local energy resources crucial. The abundant oil shale deposits in Wadi Thamad present a promising opportunity. Since Wadi Thamad oil shale has never been studied before, this research focuses on the Wadi Thamad basin near Madaba, Jordan, aiming to comprehensively characterize its oil shale using advanced analytical techniques. Using X‐ray diffraction, Fourier transform infrared spectroscopy, X‐ray fluorescence, scanning electron microscopy, thermogravimetric analysis (TGA), and differential scanning calorimetry, this study assesses the mineralogical, chemical, and thermal properties of Wadi Thamad oil shale. The findings reveal calcite and quartz as the primary minerals, with significant aliphatic, CO2, hydroxyl, and carboxyl groups. Elemental analysis highlights essential oxides, such as CaO and SiO2. Fischer assay results indicate an oil content of 5.3–10.1 wt%, a gross‐calorific value of 4.56–7.69 MJ/kg, and a sulfur content of 1.77–2.10 wt%. The peak pyrolysis temperature is 432.4°C from TGA. This research's novelty lies in its comprehensive approach to characterizing the underexplored Wadi Thamad oil shale basin. The findings enhance the understanding of Wadi Thamad's geological composition and underscore its potential as a local energy resource, contributing valuable data to Jordan's energy portfolio and offering economic benefits.