The Eocene Kopili Formation in the Assam foreland basin records sediment sources, tectonic activity and depositional environments following the India-Eurasia collision. Mineralogical and geochemical analysis of these shales exposed near Garampani, Assam, NE India was conducted to study the diagenesis, palaeoweathering, palaeosalinity, redox conditions, tectonic settings and provenance. The Kopili Formation is composed of mainly shale with thin beds of limestone, black shale and sandstone and these units overlie the Upper Sylhet Limestone. The presence of goethite-rich phosphatic nodules, secondary precipitation within the fissile planes of shale and the occurrence of anatase, talc, smectite and chlorite suggest diagenesis. The prevalence of kaolinite and mean Chemical Index of Alteration (CIA), Chemical Index of Weathering (CIW), Al2O3/MgO and Rb/Sr values of 86.73, 97.26, 16.36 and 1.32, respectively indicates extensive source rock weathering in humid tropical climate. The Index of Compositional Variation (ICV) values ranging between 0.47 and 2.38 also signify high weathering and tectonically active basin. The Sr/Ba ratio 0.34 ± 0.27 (mean±2σ) suggest overall freshwater basin. The Ni/Co (2.84 ± 2.29), V/Cr (1.65 ± 0.45) and Ce/Ce∗ (0.97 ± 0.63) suggest fluctuating redox environment. The samples predominantly cluster in continental island arc domain on the Th-Sc-Zr/10, La-Th-Sc and Th-Co-Zr/10 discriminant diagrams. Elemental ratios of Th/Sc, La/Sc, Cr/Th with average 0.91, 3.18, 10.13 respectively and La/Th-Hf plot suggest a felsic source rock. The Kopili shale was deposited in freshwater, continental island arc basin with fluctuating redox conditions, receiving sediments from weathered Himalayan granites and gneisses under a warm and humid climate. Subsequently, they underwent diagenetic alteration by low-pH fluid(s).