In this paper, the type, vertical evolution, and distribution pattern of sedimentary facies of the Paleogene Dainan Formation in the Gaoyou Depression of the North Jiangsu Basin are studied in detail. Results show that fan delta, delta, nearshore subaqueous fan, and lacustrine facies developed during the Dainan Formation period and their distribution pattern was mainly controlled by tectonics and paleogeography. The fan delta and nearshore subaqueous fan facies predominantly occur in the southern steep slope region where fault-induced subsidence is thought to have created substantial accommodation, whereas the delta facies are distributed on the northern gentle slope which is thought to have experienced less subsidence. Finally, the lacustrine facies is shown to have developed in the center of the depression, as well as on the flanks of the fan delta, delta, and nearshore subaqueous fan facies. Vertically, the Dainan Formation represents an integrated transgressive– regressive cycle, with the E2d1 being the transgressive sequence and the E2d2 being the regressive sequence. This distribution model of sedimentary facies plays an important role in predicting favorable reservoir belts for the Dainan Formation in the Gaoyou Depression and similar areas. In the Gaoyou Depression, sandstones of the subaqueous distributary channels in the fan delta and the subaqueous branch channels in the delta are characterized by physical properties favorable for reservoir formation.