An association of organic-walled microfossils consisting of filamentous cyanobacteria, algal coenobia and acanthomorphic acritarch have been documented from non-calcareous claystones and mudstones of the Pepper Mountains Shale Formation (PMSF), located in its stratotype area in the Pepper Mountains, which are part of the Holy Cross Mountains in Poland. These sediments represent the oldest strata of the ?ysogóry Unit, deposited on the edge of the East European Craton (Baltica). Non-branched, ribbon-like and thread-like cyanobacteria trichomes exhibit morphological similarities to families Nostocaceae and Oscillatoriaceae. Cells assembled in rounded to irregular clusters of monospecific agglomerations represent multicellular algal coenobia, attributed to the family Scenedesmaceae. The co-occurrence of acritarchs belonging to species as Eliasum llaniscum, Cristallinium ovillense and Estiastra minima indicates that the studied material corresponds to the lower Middle Cambrian. Deposition of the PMSF took place in shallow marine environment, influenced by periodical freshwater inputs. The varying degree of coloration of organic-walled microfossils is interpreted in this study as factor indication of possible different source of their derivation. Dark brown walls of cells assembled in algal coenobia might have sustained previous humification in humid, terrestrial environments, which preceded their river transport into the sea together with nutrients, causing occasional blooms of cyanobacteria in the coastal environment and the final deposition of both groups of organisms in marine deposits.