Abstract: Due to the limitation of seismic resolution, small geological objects, such as thin beds and microfaults are difficult to be identified. The spectral-inversion technique based on matching pursuit has been introduced in this paper as an effective way to improve the resolution of seismic interpretation. Spectral-inversion technique can directly acquire reflection coefficient data without any prior model and horizon based on high precise matching pursuit spectral decomposition. The reflection coefficient data can be used for stratigraphic sequence description, thin reservoir prediction and small fault identification with its higher resolution. Actual applications of this technology to several oilfields have shown good results and a wide application is expected.