Abstract: This paper studies organic geochemistry of the source rocks related to volcanic rocks within the Shangkuli Formation of Labudalin basin by the analytic techniques of rock pyrolysis, chloroform bitumen extration, vitrinite reflectance analysis, gas chromatography (GC) and gas chromatography-mass spectrogram (GC-MS) analysis in order to constrain the relatioship between volcanism and source rocks. The results indicate that the vitrinite reflectances and peak temperature of pyrolysis (Tmax) of the source rocks range from 0.56% to 0.62% and from 429 to 442℃, respectively, and that part of chloroform bieuminous “A” conversion (A/TOC) and hydrocarbon conversion(HC/TOC)are more than 5% and more than 3%, respectively. The above mentioned characteristics suggest that the organic materials within the source rocks are similar to ones of low maturation stage, implying that the maturity of organic materials in the source rocks is not influenced by the volcanic activities. In addition, the transitive metal elements from the volcanic rocks are transferred to the source rocks during the interaction between the volcanism and the source rocks. Based on the catalytic process of transitive metal elements during hydrocarbon generation, it is suggested that volcanic activities would cause the earlier hydrocarbon generation of source rocks and could favour the formation of low-mature oil. Taken together, it is proposed that the volcanism not only provides the materials for the formation of the excellent source rocks by the introduction of hydrothermal fluid resulting in the breeding of aquatic organisms, but also provides the favourable condition for the preservation and transformation of organic materials by the improvement of the salinity in sedimentary basin resulting in the formation of reductive environment.