Abstract: The mineralogical development and diagenetic sequence of lacustrine shales in the Chang 7 Member of the Yanchang Formation in the Ordos Basin are detailed studied. A model of their depositional system and a diagenetic diagram are proposed in this study. Through detailed petrographic, mineralogical, and elemental analyses, four distinct shale types are identified: argillaceous shale, siliceous shale, calcareous shale, and carbonate, clay, and silt-bearing shale. The main diagenetic process in argillaceous shale is the transformation of illite to smectite, negatively impacting shale porosity. Siliceous shale undergoes carbonate cementation and quartz dissolution, contributing to increased porosity, particularly in mesopores. Calcareous shale experiences diagenesis characterised by carbonate formation and dissolution, with a prevalence of siderite. In carbonate, clay, and silt-bearing shale, the dissolution of K-feldspar contributes to illitization of kaolinite. Argillaceous shale, characterised by more clay minerals and lower mesopore volume, is identified as a potential hydrocarbon seal. Siliceous shale, with the highest pore volume and abundant inter-mineral pores, emerges as a promising shale oil reservoir. These findings contribute to a comprehensive understanding of shale properties, aiding in the prediction of shale oil exploration potential in the studied area.