Abstract: In order to enhance the efficiency of exploration in the Dapingfang-Taoyuan region of the East Depression of the Liaohe Basin, seismic data and reservoir characteristics were restudied in this paper. Lithostratigraphy, seismic stratigraphy and sequence stratigraphy of the Es3 of Shahejie Formation were established. Upon the three 3rd order sequence boundaries, 3 system tracts and 2 types of parasequences recognized, the authors established the depositional systems and the sequence sytratigraphic framework, which are proven useful for exploration in the region.