To further understand the characteristics and hydrocarbon-generation model of Paleogene–Neogene System salt-lake facies source rocks in the Western Qaidam Basin, selecting argillaceous source rock samples from the Lower Ganchaigou Formation, the Upper Ganchaigou Formation, and the Upper Youshashan Formation in the Western Qaidam Basin, relevant experimental studies have been carried out, including pyrolysis of rocks, analysis of soluble components, and simulation of hydrocarbon generation and expulsion. According to the analysis of the experimental results, the selected sample thermal evolution degree stays in the low-mature–immature stage and shows good hydrocarbon-generation ability. There was a positive correlation between chloroform bitumen “A,” moderate salt content and carbonate content, and cumulative liquid hydrocarbon production. The hydrocarbon-generation peaks of the Paleogene–Neogene salt-lake facies source rocks in the Western Qaidam Basin are significantly advanced compared to the traditional model. The result clearly defines the hydrocarbon-generation model of Paleogene–Neogene salt-lake facies source rocks in the study area, which is important to direct the oil and gas exploration in the Western Qaidam Basin.