This paper presents the results of the first detailed study of the whole of the Karroo Supergroup in the Metangula graben area. The deposit is situated principally in a graben structure with several smaller basins attached to it. The same Karroo graben system continues through Tanzania to coastal Kenya. The graben reaches a maximum depth of 10 km in the central part. The Karroo Supergroup is divided into three. The upper Karroo consists of more than 5 km of cyclical fluvial sequences forming the main graben infilling. The middle Karroo consists of 600 m of red mudstones with six fossil reptile bone levels. The lower Karroo consists of up to 330 m of sandstones and silts with frequent carbonaceous horizons. The datation of the deposits is based on one reptile zone ( Cistecephalus-Zone) and three palynological assemblage zones. This biostratigraphy was only established for the lower, the middle and lowest part of the upper Karroo. The lower Karroo is of a lower, middle and upper Ecca age (Permian). The middle Karroo is mainly of lower Beaufort age with the Ecca-Beaufort boundary situated at its lowermost part. The upper Karroo has a possible age of Beaufort up to Stormberg. The Permian-Triassic boundary corresponds roughly to the middle-upper Karroo transition and the upper Karroo probably continues into the early Jurassic. These rocks have been correlated with the Karroo sediments of other basins in southern and eastern Africa, on palaeontological and lithological grounds. It is postulated that the lower and middle Karroo were deposited in a lacustrine and/or fluvial regime in a basin with a different form than the upper Karroo graben. This graben was formed and filled during the upper Karroo by braided rivers and mostly by meandering rivers. The provisionary estimates of coal reserves in the Lunho Valley (SW edge of Metangula graben) is about 118 million and 376 million tons with ash contents of 35–40% or 40–45%, respectively.