Abstract: Based on study of the sequential stratigraphy and sedimentary system of Paleogene Liushagang Formation in Fushan Depression of Beibu Bay Basin, this paper focuses on the controlling factors of lithologic reservoirs and analyzes the favorable areas of lithologic oil and gas reservoirs in Fushan Depression on the basis of the research on the discovered lithologic reservoirs, aiming to guide exploration of lithologic oil and gas reservoirs at the next stage. The study indicates that the Paleogene System in Fushan Depression can be divided into three three-level sequences. The types of main sedimentary system are braided delta, fan delta, sublacustrine fan and lake. The lithologic reservoirs are mainly controlled by ancient landform of structure, development background of sedimentary system and matching relations between physical properties of reservoirs and source-reservoir-cap assemblages. In each three-level sequence, lithologic reservoirs are most easily formed in the area of lake-invaded system. On the plane, lithologic reservoirs related to channel mouth bar, slip block and sublacustrine fan are easily formed in delta frontal belts.