The Minghuazhen Formation in the Cangdong Sag of the Bohai Bay Basin is a key sedimentary unit for investigating regional provenance evolution, paleoclimate variations, and hydrocarbon potential in Eastern China. This study integrates mineralogical and geochemical analyses to explore sedimentary characteristics. Techniques include X-ray diffraction (XRD), major/trace element compositions, rare earth element (REE) distributions, and organic carbon content. XRD data and elemental ratios (e.g., Al/Ti, Zr/Sc) suggest a predominant felsic provenance, sourced from acidic magmatic rocks. The enrichment with light rare earth elements (LREE: La–Eu) and notable negative Eu anomalies in the REE patterns support the interpretation of a provenance from the Taihangshan and Yanshan Orogenic Belts. Geochemical proxies, such as the Chemical Index of Alteration (CIA) and trace element ratios (e.g., U/Th, V/Cr, Ni/Co), indicate a warm and humid depositional environment, characterized by predominantly oxic freshwater conditions. Organic geochemical parameters, including total organic carbon (TOC), total nitrogen (TN), and C/N ratios, suggest that organic matter primarily originates from aquatic algae and plankton, with C/N values predominantly below 10 and a strong correlation between TOC and TN. The weak correlation between TOC and total carbon (TC) indicates that the organic carbon is mainly biological in origin rather than carbonate-derived. Although the warm and humid climate promoted the production of organic matter, the prevailing oxic conditions hindered its preservation, resulting in a relatively low hydrocarbon generation potential within the Minghuazhen Formation of the Cangdong Sag. These findings provide new insights into the sedimentary evolution and hydrocarbon potential of the Bohai Bay Basin.