Based on the discussion of the sentimental diagnosis and fracture function analysis which influences the reservoir development, the paper analyzed the forming condition and influencing factors of the high quality reservoir in Xujiahe Formation. The results show that sedimentary facies in Xujiahe is the most basic requirements of the formation of high quality reservoirs. The lithology is the material foundation for preferable promised reservoir formation. Diagenesis is the controlling factor of a good reservoir while the fractures are the key point.