The shale reservoir of Shanxi Formation in Ordos Basin has high clay mineral content, fast lithofacies change, high thermal evolution degree and poor reservoir performance. The unclear understanding of reservoir characteristics and the unclear enrichment law restrict the optimization of favorable intervals of shale reservoir in Shanxi Formation. Based on the logging data analysis, scanning electron microscopy, porosity and permeability analysis, gas content test, nitrogen adsorption test, methane adsorption test and rock mechanics test of 7 wells in Yan’an Area, the characteristics and exploration potential of shale reservoirs in Shanxi Formation in Yan’an area were evaluated. The results show that the mineral composition of shale rocks in Shanxi Formation is complex, with an average quartz content of 30.3% and an average clay mineral content of 65.8%. The type of organic matter is mainly type III, the average organic Ro(vitrinite reflectivity) is 2.64%, which is in the over-mature stage, and the average TOC (total organic carbon)is 2.12%. The average porosity is 2.94%, and the average permeability is 0.017 3×10^-3 μm². Scanning electron microscopy results show that shale samples develop four types of microscopic pores, including organic matter pores, intergranular pores, intragranular pores, and microfractures. The microscopic pore structure is dominated by micropores and mesopores and the pore type is mainly semi-closed pores. CT(computed tomography) scanning shows that the dual structure of main connected pore group-isolated micropore’ is developed in the rock, and there is a dominant pore development area. The isothermal adsorption capacity of shale methane in the Shanxi Formation is 0.50~2.38 m³/t,the on-site analytical gas content is 0.04~16.86 m³/t, and the average recovery coefficient is 81.4%. The shale of Shanxi Formation has the characteristics of high Yang’s modulus, low Poisson’s ratio and moderate compressive strength, and has the potential to form complex fracture network. Combined with the mature thermal evolution degree, good hydrocarbon generation conditions, adsorption performance and compressibility basis of Shanxi Formation shale, it constitutes the core element of shale gas accumulation. In addition, the gas source supplement of coal seam in Shanxi Formation has good exploration potential. The organic-rich strata and high gas-bearing dominant lithofacies of Shan 2 member are the potential strata for further exploration.