Abstract: The study area is located in the south of fault and fold belt in west margin of Ordos basin in Anguo-Xiamen- Xiaowanzi area of Pingliang City. Through the study on the sedimentary characteristics of Permian Shanxi Formation in the area, the geological conditions of coal occurrence and coal resources exploration prospect were evaluated. The coal-bearing sedimentary and forming conditions of Permian Shanxi Formation were influenced by ancient uplift and paleogeographic environments, the south of the study area was the main sediment supply source area, meandering river and delta constituted sedimentary environments, the action of the post depositional structure caused erosion and deformation of the sedimented strata, etc., inducing small distribution area, complex structure, poor stability and high ash content of seams in Permian Shanxi Formation in the study area. Due to influence and control of multiple factors, coal-bearing strata of Shanxi Formation in the area failed to form and remain large coal field. Searching for coal should be done in Anguo-Xiamen-Xiaowanzi syncline and the surrounding area.