Research highlights: This is the first geochemical work ever done for the shales of Neoproterozoic Chhaosa Formation of Simla Group, Lesser Himalaya.K2O/Na2O vs. SiO2/Al2O3, TiO2 vs. Al2O3, and Zr vs. TiO2 binary diagrams of the studied shales indicate felsic source rock.High CIA, CIW, A–CN–K and Al2O3 values of Chhaosa shales support intermediate to strong weathering of source rock.K2O/Na2O vs. SiO2 plot, K2O vs. Na2O, plot and CaO–K2O–Na2O ternary plot represent deposition of Chhaosa deposits in a passive margin setting.Values of Ni/Co, Cu/Zn, V/Cr, authigenic U and U/Th, represent a well-oxygenated condition during the deposition of the Chhaosa delta system. This is consistent with the concept of an increase in oxygen levels during the Neoproterozoic era is favoured by many workers. Abstract: Neoproterozoic Chhaosa shales of Simla Group, Lesser Himalaya, were considered for major and trace element analysis to delineate palaeo-weathering, palaeo-oxygenation, tectonic setting, sediment maturity, and provenance. The shales exhibit a significant proportion of SiO2, Al2O3, K2O, MgO, Fe2O3, Zr, Zn, Rb, V, Cr, Sr, Y, Co, Ga, Th, Nb, Sc, and U. Source rocks are primarily of granitic (acidic) origin, as indicated by Al2O3 wt.% vs. TiO2 wt.% and Cr (ppm) vs. Ni (ppm) bivariate plots. Th/Cr, Cr/Th, Th/Sc, and Th/Co values of studied samples have been correlated with post-Archaean Australian average shale (PAAS) and upper continental crust (UCC) values, which indicate that the source rock is felsic. Palaeo-weathering condition of the source is delineated by average CIA, chemical index of weathering (CIW), and A–CN–K triangular plot values. The shales depict intermediate to strong chemical weathering and semi-arid to humid climatic conditions. V/Cr, Cu/Zn, Ni/Co, and U/Th values reveal sedimentation of Chhaosa Formation under oxic atmospheric conditions, which corroborates with the inferred oxic conditions of the Neoproterozoic. SiO2 vs. K2O/Na2O discriminant diagram exhibits deposition along a passive margin field. ICV values suggest deposition of compositionally mature sediments under tectonically stable conditions. Deposition of Chhaosa delta system occurred during a relatively quiescent stage of tectonism between intermittent phases of rifting related to the Rodinia Supercontinent.