Reservoir quality varies greatly in the Shahejie Formation in the Dongying Sag. It is essential to analyze the variation and mechanisms of reservoir quality for determining the controlling factors based on cores, porosity measurements and fluid inclusion techniques and so on. The sandstones in the fluvial, (fan) delta-front have the best reservoir quality due to the depositional conditions mechanically controlling the petrology configuration and the primary porosity, and chemically influencing the diagenesis and development of secondary pores. The activity of the boundary faults and the sedimentary facies dominate the variation of reservoir quality in different areas and intervals. The reservoir quality varies with the position of sandstone beds in different vertical models of sandstone and mudstone. This mainly arose from the strong cementation or strong dissolution in the sandstone caused by the diagenesis evolution of adjacent mudstone. With higher oil saturation reservoir quality is better because the hydrocarbon charge favors dissolution and restricts cementation. Diagenesis, depositional conditions and tectonic setting are the key controls of reservoir quality in the Shahejie Formation of the Dongying Sag.