The Oligocene coals from the northeastern part of the Assam-Arakan basin show a gradual decrease in the content of moisture, volatile matter and oxygen with corresponding increase in carbon content and calorific value from the Foreland Shelf to the deeper part of the geosyncline, reflecting the coalification trends in this basin. It has been suggested that the oxygen was replaced by organic sulphur, thereby lowering the oxygen content in the coals, The coals are perhydrous in nature with a high sulphur content. The high volatile content, perhydrous nature and high sulphur content in the Oligocene coals, as well as the presence of streaky facies and a very fine clastics unit, indicate that they were probably deposited in a marine-influenced deltaic and lagoonal environment. The plots of carbon versus hydrogen on Seyler＇s coal band follow a trend which differs from that of Seyler＇s band of Carboniferous bright coals. The coalification of the Oligocene coals represents the lignitic stage, in the case of the Foreland Shelf, and near subbituminous stage in the deeper geosynclinal part of the basin, A more intense, and probably sudden, dynamic process was involved in bringing about higher coalification in Oligocene coal of the geosynclinal facies than in Foreland Shelf area. This is possibly due to intense mountain-building forces acting from the southeastern direction of the basin.