For unveiling coal-bearing source rocks in terrestrial-marine transitional sequences, the sequence stratigraphic framework and sedimentary facies of Lower Oligocene Yacheng Formation of Qiongdongnan Basin were investigated using seismic profiles, complemented by well bores and cores. Three third-order sequences are identified on the basis of unconformities on basin margins and correlative conformities in the basin center, namely SQYC3, SQYC2 and SQYC1 from bottom to top. Coal measure in Yacheng Formation of Qiongdongnan Basin were deposited within a range of facies associations from delta plain/tidal zone to neritic sea, and three types of favourable sedimentary facies associations for coal measure were established within the sequence stratigraphic framework, including braided delta plain and alluvial fan, lagoon and tidal flat, and fan delta and coastal plain facies associations. Results shown that, in the third-order sequences, coal accumulation in landward areas(such as delta plain) of the study area predominantly correlates with the early transgressive systems tract(TST) to middle highstand systems tract(HST), while in seaward areas(such as tidal flat-lagoon) it correlates with the early TST and middle HST. The most potential coal-bearing source rocks formed where the accommodation creation rate(Ra) and the peat-accumulation rate(Rp) could reach a state of balance, which varied among different sedimentary settings. Furthermore, intense tectonic subsidence and frequent alternative marine-continental changes of Yacheng Formation during the middle rift stage were the main reasons why the coal beds shown the characteristics of multi-beds, thin single-bed, and rapidly lateral changes. The proposed sedimentary facies associations may aid in predicting distribution of coal-bearing source rocks. This study also demonstrates that controlling factors analysis using sequence stratigraphy and sedimentology may serve as an effective approach for coal-bearing characteristics in the lower exploration deepwater area of South China Sea. For the unveiling of coal-bearing source rocks in terrestrial-marine transitional sequences, the sequence stratigraphic framework and sedimentary facies of Lower Oligocene Yacheng Formation of Qiongdongnan Basin were investigated using seismic profiles, complemented by well bores and cores. Three third-order sequences are identified on the basis of unconformities on basin margins and correlative conformities in the basin center, namely SQYC3, SQYC2 and SQYC1 from bottom to top. Coal measure in Yacheng Formation of Qiongdongnan Basin were deposited within a range of facies associations from delta plain / tidal zone to neritic sea, and three types of favored sedimentary facies associations for coal measure were established within the sequence stratigraphic framework, including braided delta plain and alluvial fan, lagoon and tidal flat, and fan delta and coastal plain facies associations. Results shown that in the third -order sequences, coal accumulation in landward areas (such as delta plain) of the study area predominantly correlates with the early transgressive systems tract tract (TST) to middle highstand tract (HST), while in the seaward areas (such as tidal flat-lagoon) it correlates with the early TST and middle HST. The most potential coal -bearing source rocks formed where the accommodation creation rate (Ra) and the peat-accumulation rate (Rp) could reach a state of balance, which varied among different sedimentary settings. Furthermore, intense tectonic subsidence and frequent alternative marine-continental changes of Yacheng Formation during the middle rift stage were the main reasons why the coal beds shown the characteristics of multi-beds, thin single-bed, and rapidly lateral changes. The proposed sedimentary facies associations may aid in predicting distribution of coal-bearing source rocks. study also demonstrates that controlling factors analysis using sequence stratigraphy and sedimentology may serve as an effective approach for coal-bearing characteristicsin the lower exploration deepwater area of ​​South China Sea.