Thin-bedded sandstone reservoirs with edge and bottom water are generally prone to water channeling and suffer from low recovery degree. Their development should follow the principles of fine stratification, well type optimization, water line regulation and swept volume improvement. The Yan 522 reservoir in ND26 well block is a typical thin-layered, medium-to-low permeability sandstone reservoir with edge and bottom water. At present, its injection-production relationship is damaged with severe water channeling, accelerated production decline, and unclear distribution law of remaining oil. By establishing a refined dynamic model and conducting numerical simulation, the reservoir production performance is revealed, the distribution law and genetic types of remaining oil are clarified, and a comprehensive adjustment scheme is formulated. The results show that dividing flow units based on reservoir classification, setting different flow parameters and water saturation formulas for different flow units, and initializing the dynamic model with the enumeration balance method ensure that the initial fluid field distribution conforms to objective geological laws. With the guidance of geological cognition, the parameters of numerical simulation are calibrated to obtain satisfactory history matching of reservoir pressure and production performance. The reservoir has a weakly developed southern aquifer whose energy can hardly propagate to the north part. The injection-production response relationship is revealed, and the along-channel and principal stress directions are determined to be the main advance directions of injected water. The cumulative incremental oil production by water flooding reaches 4.1×10? t. The overall distribution of remaining oil is controlled by structural relief, oil-water contact position and reservoir physical properties. The remaining oil abundance in structural high positions ranges from 64×10? t/km² to 84×10? t/km², while the abundance near the oil-water contact is lower than 8×10? t/km², and that in areas with poor reservoir physical properties is less than 16×10? t/km². The remaining oil can be classified into four genetic types: the type at edge without well control, the type sheltered by physical properties, the type undeveloped between production wells and the type un-swept by waterflood. After the implementation of the adjustment scheme, an effective injection-production relationship is re-established, and the comprehensive water cut is controlled. The daily incremental oil production is about 12.5 t, the daily incremental water injection is approximately 60 m³, the control degree of waterflood is increased by 21.4%, the recoverable reserve is increased by 4.0×10? t, and the oil recovery factor is enhanced by 4.1%. The overall production performance of the scheme reaches the design standard. The monitored production data of new wells is consistent with the predicted remaining oil saturation, which verifies that the refined dynamic reservoir model achieves accurate characterization and can provide effective guidance for production.