The Fahliyan Formation (Neocomian) is a major hydrocarbon reservoir in the southern and southwestern oil-prone regions of Iran, particularly in the Dezful Embayment and Abadan Plain. This study integrates core, thin-section, gamma-ray and sonic log data from two wells in the Rudak and Milatun fields to investigate the depositional setting, sequence stratigraphy and reservoir quality of the formation in the southern Dezful Embayment. The studied subsurface sections are about about 445-460 m thick and they consist of 5 microfacies which deposited in a homoclinal carbonate ramp. Facies and well-log analyses indicate the presence of two third-order depositional sequences corresponding to the lower part of the Mehrdad supersequence and the K30 and K40 maximum flooding surfaces in the Zagros Basin. Based on the stacking pattern of various depositional microfacies and reservoir quality of the studied intervals, the Fahliyan Formation can be divided into two reservoir units. The upper part consists mostly of bioclastic wackestones of the protected lagoon and open marine settings, which has a low reservoir quality. On the other hand, the good reservoir quality of the underlying carbonates is related to high pro-perm values of the peloidal grainstones and algal packstones deposited in a high-energy mid-ramp setting.