A detailed sedimentological investigation of the Baluti Formation (Late Triassic) in the Warte section, Imbricated Zone, northeastern Kurdistan region of Iraq has been undertaken for the first time. The formation is comprised of 34 m of dolomitic limestone, marly limestone, and marly dolomitic limestone which is partially brecciated and all interbedded with shale and several beds of marl in the lower part. Based on the field observations and petrographic inspections, four different lithostratigraphic units were identified in the studied section, which are, in ascending order: marly dolomitic limestone interbedded with marl and shale unit, brecciated marly dolomitic limestone interbedded with shale unit, fractured marly dolomitic limestone unit, and marly limestone interbedded with shale unit. The petrographic study of 19 thin sections of Baluti carbonates shows that the majority are composed of carbonate mud (micrite). The skeletal grains include ostracods, calcispheres, benthonic foraminifera, gastropods, bivalves, clasts, and bioclasts. While non‐skeletal grains include peloids, intraclasts, and extraclasts. The results of X‐ray diffraction (XRD) of five samples and scanning electron microscope (SEM) of three samples of the shale and marl of the studied formation show that the main clay mineral is illite, whereas non‐clay mineral is dolomite. The carbonate rocks of the Baluti Formation were subjected to different diagenetic processes, such as micritization, dolomitization, cementation, compaction, solution, pyritization, neomorphism, and fracturing. Three main microfacies were identified in the Baluti carbonates and according to their environmental interpretation, they are grouped into one basic type of facies association—subtidal‐semi restricted lagoon. Field observation, petrographic, microfacies, and textural analysis indicate that the Baluti Formation in the Warte section was deposited in a shallow marine, subtidal (lagoon) environment with semi‐restricted conditions.