Abstract: In order to study the hydrocarbon potential of mud shale of Permo-Carboniferous coal-bearing measures in Jiyang depression, distribution of residual stratum, organic geochemical characteristics of mud shale and hydrocarbon generation potential comparison of mud shale of Permo-Carboniferous in Jiyang depression were studied in this paper with the methods of geochemistry, petroleum geology and coal geology. The results showed that residual stratum of Permo-Carboniferous in Jiyang depression was thicker in the south than in the north and distributed in large expanse. The residual thickness could generally reach to 200~800m, the thickest could reach to 900m. Abundance of organic matter of shale was better. Kerogen was of type III and conducive to generate gas. Maturity of organic matter reached to mature-higher mature stage. Hydrocarbon potential of Benxi Formation and Taiyuan Formation was better and mainly distributed in northern basin. Hydrocarbon potential in Dongying, Huimin, Chezhen and Zhanhua got better in turn. There were medium-good quality oil and gas source rocks in each sunken of hydrocarbon source rocks of Shanxi Formation. Comparing the characteristics of the clay shale in the study area with those in other regions in China, hydrocarbon generation ability of coal shale of Permo-Carboniferous coal beaaring-measures in Jiyang depression is of the medium level. There is certain shale gas exploration potential.