The current sedimentological and petrographical research of the Abbottabad Formation has been carried out in order to understand the formation and evolution of the Proto-Tethys Ocean during the Cambrian on the northern margin of the Indian Plate. The Muzaffarabad region is located east of the Upper Indus Basin and the southern part of the Hazara Kashmir Syntaxis. The geological history of the region varies from the Precambrian to the recent period. The Cambrian Abbottabad Formation is well exposed along the Hazara Kashmir Syntaxis at the core of the 500-m-thick Muzaffarabad anticline. The Abbottabad Formation is an unconformity-bounded allo-stratigraphic unit. It has an unconformable lower contact with the Late Precambrian Dogra Formation and an unconformable upper contact with the Paleocene Hangu Formation. The Abbottabad Formation has been divided into four lithofacies, from bottom to top, namely, thinly interbedded dolomite and shale, cherty-stromatolitic dolomite, oxidized limonitic-brecciated zone, and quartzite, with significant lithological changes. Petrographic studies revealed four types of dolomites: fine crystalline dolomite (Dol. I), dolomitic cryptocrystalline chert (Dol. II), algal mat-stromatolitic dolomite (Dol. III), and intraclastic-dolo-grain stone (Dol. IV). The mineral composition of dolostone was analyzed using X-ray diffraction (XRD) and found to be consistent with previous petrographic studies. The dolomite mineral content decreased from base to top, while chert increased towards the top. Elemental weight percentages through energy dispersive X-ray (EDX) analysis show different elements constitute the minerals found in the dolostone, as confirmed by petrographic and XRD analysis. Using outcrop data, facies information, and geochemical data, a modified depositional model of the Abbottabad Formation was developed. During the Early Cambrian period, the formation was deposited in a shallow subtidal to supratidal setting of the Proto-Tethys Ocean. The top of this deposit marks the Cambrian–Paleocene boundary. Because of the progressively coarsening outcrop sequences, this formation seems to be at the very top of the Proto-Tethys Ocean’s shallow marine system.