Abstract: To deeply explore the exploration prospects of the Early Paleozoic shale gas in the South Yellow Sea Basin, we comparatively analyzed the characteristics of Paleozoic strata and tectono-sedimentary evolution in the Upper and Lower Yangtze region, and discussed the hydrocarbon source conditions and shale gas preservation conditions of the Early Paleozoic in this basin. The sedimentary environments of the Early Paleozoic strata in the Upper and Lower Yangtze are similar, and both have two sets of mature-overmature good-better hydrocarbon source rocks. In the Lower Yangtze region, they are the hydrocarbon source rocks of the Lower Cambrian Mufushan Formation and the Lower Silurian Gaojiabian Formation, which are the material basis of shale gas in the South Yellow Sea Basin. Studies have shown that the high-quality hydrocarbon source rocks of the Lower Cambrian in the South Yellow Sea Basin are mainly distributed in the two major depressions in the northern and southern parts of the basin; the hydrocarbon source rocks of the Lower Silurian are mainly distributed in the Laoshan Uplift in the central part of the basin and the Yantai Depression in the north. The South Yellow Sea Basin has "sandwich" sealing structures, detachment layers, and so on, which are conducive to the preservation of shale gas. It has relatively good shale gas preservation conditions, and the preservation conditions of the Lower Cambrian mud shale are better. The South Yellow Sea Basin has the basic materials and preservation conditions for the formation of deep shale gas, has certain exploration potential; and the prospects of shale gas in the Lower Cambrian are better than those in the Lower Silurian.