Peat forming environment strongly influences the economic value of any coal seam and coal-bearing strata. Hence, palaeoenvironmental studies provide important information for coal resource exploration. In this context, detailed studies on selected coals from the Parvadeh Area, Iran, were conducted using sedimentology, coal petrology, X-ray diffraction (XRD), scanning electron microscopy- energy dispersive X-ray analyzer (SEM-EDX), and proximate analysis. The sedimentary facies above and below the coal seams are mainly marine or marine-influenced facies, supporting that the coal-forming mires in the Parvadeh Area developed in a paralic environment, where the base level must be closely related to sea level. Sulfur contents are moderate to high and mark the influence of brackish/marine water, especially during transgression after peat growth in a lower delta plain environment. The peat-forming mires extended on coastal/delta plain lobes. The lower delta plain/coastal plain coals are characterized by lateral continuity and substantial thickness, whereas few coals possibly representing the upper delta plain are thin and more discontinuous. The detrital nature and composition of the numerous partings and the overall high ash yield in the coal seams indicate an active tectonic area with high rates of creation of accommodation space over peat growth. Coal petrology and coal facies analysis exhibits a permanently high water table within a forest swamp and mostly rheotrophic conditions, sometimes with connection to the seawater. According to paleoenvironmental reconstructions, it seems that coal layers may be thicker, with less sulfur (pyrite), but more clastic minerals and partings toward the western part of the area. Although these coal seams presently have low economic potential for the mining operation, partly due to great depth, this humic, high-volatile to medium-volatile bituminous coal may be suitable for exploration of coal bed methane resources.