Highly-mature carbonate source rock is essential to the exploration of oil and gas in southern China. In this study, the carbonate strata in the relatively well-developed Lower Permian Chihsia Formation (located in Chaohu, Lower Yangtze) were targeted, and the formation and influencing factors of source rock were discussed based on paleoenvironment reconstruction using comprehensive sedimentology, palynofacies, and organic geochemistry data. The results demonstrate that the Chihsia Formation is oxygen-deficient biogenic carbonate sediments, with marked variations in the organic and inorganic components, formed during a period of Permian transgression. The formation of source rock is the combined result of high bioproductivity and oxygen-deficient environment generated by transgression and oxygenation events which frequently occurred during transgression periods. Source rock was affected by self-dilution effects and diagenesis, causing its heterogeneous distribution in many intervals. Source rock is over 40 m thick, and can be identified based on its different organic, biological, and mineral composition characteristics. The carbonate rock appears to require no specific clay content in order to become a source rock. The combination of sedimentology, palynofacies, and organic geochemistry has provided an effective means for evaluating and predicting high-maturity carbonate source rock in the region. Highly-mature carbonate source rock is essential to the exploration of oil and gas in southern China. In this study, the carbonate strata in the relatively well-developed Lower Permian Chihsia Formation (located in Chaohu, Lower Yangtze) were targeted, and the formation and influencing factors of source rock were discussed based on paleoenvironment reconstruction using comprehensive sedimentology, palynofacies, and organic geochemistry data. The results demonstrate that the Chihsia Formation is oxygen-deficient biogenic carbonate sediments, with marked variations in the organic and inorganic components, formed during a period of Permian transgression. The formation of source rock is the combined result of high bioproductivity and oxygen-deficient environment generated by transgression and oxygenation events which occurred occurred during transgression periods. Source rock was affected by self-dilution effects and diagenesis, causing its heterogeneous distribution in many intervals. S ource rock is over 40 m thick, and can be identified based on its different organic, biological, and mineral composition characteristics. The carbonate rock appears to require no specific clay content in order to become a source rock. The combination of sedimentology, palynofacies, and organic geochemistry has provided an effective means for evaluating and predicting high-maturity carbonate source rock in the region.