This study focuses on marine sediments of the late Paleocene-early Eocene (∼55.5–49 Ma) interval from the Jaisalmer Basin of western India. It demarcates the Paleocene Eocene Thermal Maximum (PETM) using foraminiferal biostratigraphy and carbon isotope stratigraphy. A negative carbon isotope excursion of 4.5‰ delineates the PETM within the basin. We demarcate five foraminiferal biofacies using the detrended correspondence analysis. These reflect characteristics of ecology, bathymetry, relative age, and environment of deposition of the foraminifera. They record the response of foraminifera to the warmth of the PETM. Biofacies A was deposited within an inner neritic setting ∼55.5 Ma and includes benthic foraminifera Haplophragmoides spp., Ammobaculites spp., and Lenticulina spp. The presence of Pulsiphonina prima and Valvulineria scorbiculata in Biofacies B suggests an increase in runoff conditions in the basin. Fluctuating trophic conditions prevailed between ∼54–50 Ma. It is evidenced by alternating Biofacies C (endobenthic and chiloguembelinids of eutrophic conditions) and Biofacies D (epibenthic and acarininids of oligotrophic conditions). Biofacies E is dominated by deep-dwelling parasubbotinids, indicating an increase in bathymetry, possibly corresponding to the Early Eocene Climatic Optimum (∼49 Ma).