Abstract: Shale gas in coal measures is exploration direction of unconventional gas in the future.The tectonic conditions and reservoir characteristics of shale gas of Taiyuan and Shanxi Formation of the Upper Paleozoic in the eastern Ordos basin are analyzed. Studies have shown that the structure in this area is simple, the burial depth of the shale resrvoir is shallow,the thickness is large, organic carbon content, evoluation degree of organic matter and gas content of the shale are higher, shale gas accumulation conditions are favorable. The favorable area for shale gas exploration and development is located in the northeast of Ordos basin. In addition Upper Palaeozoic coal seams are developed, CBM content is high, there exists sandstone gas in local interval. Shale gas, coal-bed methane and sandstone gas in coal measures can be integrally developed. In China, coal-bearing strata and shale are widely distributed, there are prospects for exploration and development of shale gas of coal measures.