Coal and terrestrial organic matter source rock is the third group important oil source rock in China. The contents in this article are devoted to analysis and disscuss the state of arts and advances in the area, of coal and terrestrial organic matter as an oil source rock, including oil generated macerals, oil source rock type, hydrocarbons generation characteristics, the primary migration of coal derived oil and its relation to coal porosity, and organic petrological assessment of coal and terrestrial organic matter as a source rock for petroleum.