The sedimentary rocks of the Paleocene Hangu Formation in the Yadgaar Section of the Upper Indus Basin in northern Pakistan, have been the subject of an integrated field, petrographical, and sedimentological investigation. The goals of this study are to improve our understanding of the sedimentary environment, facies shifts, and the impact of tectonism on the genesis of the investigated sedimentary facies. A better understanding of the intricate relationships between the aforementioned factors will clarify whether the regional tectonic drive has partial control over or complete command of the sedimentation processes. The results of this study shows that the Hangu Formation consists of four facies: bauxite, sandstone, coal, and limestone. The bauxite deposits formed in a karst environment with severe chemical weathering in a humid to extremely humid climatic setting. Thin coal laminae indicate a peatland environment that formed within a humid tropical climate. Sub-arkose, arenite, and arkose sandstone facies mark deltaic (sub-humid), coastal–near shore (humid to hot-humid), and high-energy fluvial (arid to semi-arid) sedimentary environments, respectively. Finally, the occurrence of marly limestone points towards deposition on a shallow marine carbonate platform within a coastal-brackish environment. The facies shift of the sediments provides evidence for a gradual transition from continental to marine conditions within the study area, together with episodic transgressive and regressive cycles as well as changing climatic and geomorphological conditions. In consequence, all these changes are controlled and shaped by the effects of Paleo-Tethys tectonism during the Indo-Eurasian intra-oceanic subduction. This advancement through the current work helps in understanding tectonic-sedimentary mechanics, i.e., how regional tectono-sedimentological processes influence the formation of sedimentary sequences.