This report relates to the thermal pyrolysis of pressmud combined with in situ upgradation of the pyrolysis vapor for generation of hydrocarbons and chemicals, up to 873 K, in a batch reactor. The products of the process, comprised of gases (11 wt %), liquids (22 wt %), and solid residues (53 wt %), are well characterized by mass spectroscopy. The gases comprised of C-1-C-3 hydrocarbons include N-2, CO2, CO, and H-2, whereas the liquid products were C-10-C-27 hydrocarbons along with alcohols, acids, aldehydes, and phenolic compounds. The solid char was comprised of macro- and nanoparticles having porous structures and various functionalities. The pyrolysis vapor upgradation by iron is found to be effective in producing hydrocarbon products. A complete mechanism of the product formation during the pressmud pyrolysis is proposed. The investigation shows that pressmud can be a resource of hydrocarbons and valuable chemicals.