Abstract: Junggar Basin has abundant shale oil resources and promising exploration potential of the Permian Fengcheng Formation, which is expected to be a major strategic replacement field for increasing oil reserves and production. The exploration history of the Permian shale oil in the Junggar Basin is reviewed and the geological characteristics of alkaline lake type shale oil in Muhu Sag are analyzed by using geological,core lab test, drilling, mud logging, wireline logging and seismic data. Then the geophysical evaluation methods and reservoir stimulation technologies for shale oil “sweet spot” are systematically summarized. Finally, the shale oil exploration orientation of the Permian Fengcheng Formation is put forward. The study results show that: (1) The world’s oldest and the most extensive alkaline lake type high-quality source rocks of Fengcheng Formation are developed in Mahu Sag, with the characteristics of multiple provenances mixed deposition, triple types of reservoir spaces composed of pore, fracture and stylolite, shale oil accumulation controlled by favorable lithofacies and scattered “sweet spots”. Among them, the second member of Fengcheng Formation (Feng 2 member) shows a good exploration prospect. (2) Three key technologies such as the high-resolution seismic prediction of shale oil “sweet spot area”, “three qualities” logging comprehensive evaluation of “sweet spot interval”, and supporting reservoir stimulation technology of engineering “sweet spot” are innovatively developed. As a result, the “sweet spot area” of 1200km² and “sweet spot interval” of 17 layers have been identified. (3) In view of the key issues in exploration, shale oil “sweet spot” of Feng 2 member is still need to be finely characterized, and the geology and engineering integrated technology be deeply researched, so as to realize the overall breakthrough and further large-scale benefit development of shale oil of Fengcheng Formation.