The Sonia Sandstone of Proterozoic Jodhpur Group, Marwar Supergroup, exposed around the Sursagar dam area of Jodhpur town, Rajasthan exposes two varieties of nodular features, often spectacular in shape and size. On the basis of mode of occurrence (intra- or interbed) and stratal involvement (single or multiple) the features are classified as Type I and II. From granulometric and microscopic (optical and scanning electron) studies carried out on sandstones from the nodules and their host sandstones, geochemical analysis (SEM-EDAX) of intragranular cement present within Type I nodules, and appreciation of control of associated fracture system within Type II nodules, it is proposed that the two types of nodules vary in their formative mechanism and stage of formation. While Type I nodules are identified as product of processes operative at the early diagenetic, pre-lithification stage, the Type II nodules are undoubtedly the result of post-lithification origin triggered by formation of fracture system. Here we propose generation of vapour pressure (not exceeding the overlying hydrostatic pressure) by decay of thin, laterally impersistent organic mat as the causal factor for intrabed nodule (Type I) formation, which forced rarefication of local grain packing \tetit {vis-a-vis} early diagenetic silica cementation. The study warrants necessity of more studies on nodules to understand possible roles of organic matter and bedtransgressive fracture systems in their formation, going beyond the generalised secondary mineralization hypothesis.