Abstract: The coal-bearing source rocks of Upper Carboniferous Taiyuan Formation are widely developed in Bayan Hot Basin of Inner Mongolia. Based on the geological exploration, typical section survey, sampling and experimental analysis, the paper carries out study on the organic geochemical characteristics including organic matter abundance, types and maturity and makes preliminary evaluation on the hydrocarbon potential. The results show that the organic matter of source rocks has good shale gas source conditions with high abundance, the thermal evolution belonging to maturity-high maturity stage. Three favorable areas of shale gas reservoir are selected by multi-factor overlay analysis, namely the northern Chaganbulage, Tonggulegenaoergacha-Yikeergacha and southern Xiaheyan-Yingpanshui areas.