Drilling operations in the Halfaya oilfield frequently encounter severe wellbore instability challenges. When navigating shale deposits, wellbore instability remains the primary operational concern. Based on the analysis of the wellbore instability intervals, low-strength shale and marlstone formations are identified as the principal unstable zones that lead to non-productive time and higher drilling costs. By planning a safe operating mud window, these non-productive times and drilling costs can be mitigated. Several wellbore instability concerns have been found in a southern Iraqi oil field. A problem-diagnostic technique was done by evaluating well log data, drilling reports, mud logging reports, and pore pressure readings. In wellbore stability evaluations, the three rock failure criteria that are used the majority of the time are the Mohr-Coulomb, Mogi-Coulomb and Modified Lade criterion were used to predict a safe mud weight window. The Mogi-Coulomb and Modified Lade criteria provided more accurate predictions than the Mohr-Coulomb model in well H1. The Mohr-Coulomb criterion proved inadequate for this formation because it fails to account for the intermediate principal stress. According to the pore pressure predictions in this study, the unsuitable mud weight of 10.49 ppg is the major cause of wellbore instability during the drilling of the Nahr Umr A formation in this well; therefore, a mud weight of 14.5–15 ppg is recommended. The Formation Micro Imager (FMI) was responsible for determining the orientations of the horizontal stresses. The Halfaya oilfield has an azimuth that corresponds to a maximum horizontal stress of about N20–35 E, the findings indicate that the Nahr Umr formation is characterized by a reversal faulting regime > > . Formation lithology impacts Halfaya oilfield horizontal stress. High-strength, hardened intervals have high horizontal stress, shale and marlstone formations with low strength are the principal unstable wellbore intervals. Ultimately, to prevent breakout failures and minimize drilling fluid losses, it is recommended to either restrict wellbore inclination or employ an optimized, higher mud weight.