The petrological studies on Khadsaliya lignites from Bhavnagar district have been carried out for their microconstituent’s characterization. Quantitative estimation of macerals reveal, due to high amount of macerals of huminite group, that this lignite deposits has formed from forest dominated vegetation in a fast subsiding basin, experiencing almost uniform environmental conditions, with slight intermittent fluctuations. The rank based on Ro max % values indicates that lignites are less mature and have not reached the sub-bituminous stage of coalification as those of the lignites from Panandhro (Gujarat) and Neyveli (Tamil Nadu) fields. High pyrite content in the Khadsaliya lignite makes it not much suitable for combustion purpose.