The mineralogical and geochemical characteristics of the Upper Triassic Baluti shale from the Northern Thrust Zone (Sararu section) and High Folded Zone (Sarki section) Kurdistan Region, Iraq, have been investigated to constrain their paleoweathering, provenance, tectonic setting, and depositional redox conditions. The clay mineral assemblages are dominated by kaolinite, illite, mixed layers illite/smectite at Sararu section, and illite > smectite with traces of kaolinite at Sarki. Illite, to be noted, is within the zone of diagenesis. The non-clay minerals are dominated by calcite with minor amounts of quartz and muscovite in Sararu shale; and are dominated by dolomite with amounts of calcite and quartz in Sarki shale. Baluti shale is classified as Al-rich based on major and minor elements. The chemical index of alteration (CIA) is significantly higher in the Sararu than the Sarki shales, suggesting more intense weathering of the Sararu than the Sarki shales. The index of compositional variability (ICV) of the Sararu shale is less than 1 (suggesting it is compositionally mature and was deposited in a tectonically quiescent setting). More than 1 for Sarki shales (suggest it is less mature and deposited in a tectonically active setting). Most shale of the Baluti plot parallel and along the A-K line in A-CN-K plots suggest intense chemical weathering (high CIA) without any clear-cut evidence of K-metasomatism. Clay mineral data, Al enrichment, CIA values, and A-CN-K plot suggest that the source area experienced high degree of chemical weathering under warm and humid conditions, especially in Sararu. Elemental ratios critical of provenance (La/Sc, Th/Sc, Th/Cr, Th/Co, Ce/Ce*PN, Eu/Eu*PN, and Eu/Eu*CN) shows slight difference between the Sararu and Sarki shales; and the ratios are similar to fine fractions derived from the weathering of mostly felsic rocks. The Eu/Eu*CN, Th/Sc, and low K2O/Al2O3 ratios of most shales suggest weathering from mostly a granodiorite source rather than a granite source, consistent with a source from old upper continental crust. Discrimination diagrams based on major and trace element content point to a role of the felsic-intermediate sources for the deposition of Baluti Formation, and probably mixed with mafic source rocks at Sararu section. The chondrite-normalized rare earth elements (REE) patterns are similar to those of PAAS, with light REE enrichment, a negative Eu anomaly, and almost flat heavy REE pattern similar to those of a source rock with felsic components. The source of sediments for the Baluti Formation was likely the Rutba Uplift and/or the plutonic-metamorphic complexes of the Arabian Shield located to the southwest of the basin; whereas the Sararu shale was affected by the mafic rocks of the Bitlis-Avroman-Bisitoun Ridge to the northeast of Arabian Plate. The tectonic discrimination diagrams, as well as critical trace and REE characteristic parameters imply rift and active setting for the depositional basin of the shale of Baluti Formation. The geochemical parameters such as U/Th, V/Cr, V/Sc, and Cu/Zn ratios indicate that these shales were deposited under oxic environment and also show that Sarki shale was deposited under more oxic environment than Sararu.