The Matanomadh Formation, characterised by the presence of Jarosite, provides an opportunity to understand its depositional environment. The detection and presence of Jarosite serve as an indicator of past climatic conditions. In order to comprehend the depositional settings and palaeoenvironment of the region in the Western Kachchh, a comprehensive fieldwork was conducted. The integrated field geological study, including mapping of lithological variations and their stratigraphic relations, lithological profile compilations and sampling along with laboratory analysis, was undertaken of the Matanomadh Formation. The study suggested that the Matanomadh Formation was deposited in a fluvial or transitional tidal to marine environment, such as an estuarine or lagoonal setting, under intermittently arid to semi-arid climatic conditions. The presence of Jarosite highlights acidic environmental conditions, potentially driven by volcanic activity or hydrothermal processes during the Palaeocence. These findings enhance the understanding of palaeoenvironmental conditions in the Kachchh Basin during the Palaeocence and provide significant insights for understanding the geologic environments of Jarosite-bearing localities on Mars. The occurrence of Jarosite, along with minerals such as alunite, kaolinite, gypsum, and goethite, indicates an oxidising environment and suggests periodic climatic fluctuations between humid and arid conditions, resembling those inferred for the Late Noachian period on early Mars. Jarosite serves as a critical marker for acidic, hydrous, and near-surface oxidising conditions analogous to those hypothesised for early Mars.