With the exploration and development of oil and gas, the research of the lithologic reservoir has become an important part of rolling exploration in Jinhu Sag in recent years. In this paper, the sedimentary facies, reservoir characteristics, reservoir-forming rules and the anatomy of the key reservoirs are researched to analyze the lithologic reservoir-forming rules and factors of the first Member of Dainan Formation in Duntang-Xiaoguan area, Jinhu Sag. On the basis of core observation and analysis of test data, it is considered that fan-delta facies, shore-shallow lake subfacies and delta facies are mainly developed in the first Member of Dainan Formation. Utilized the characteristics of sand thickness and the results of seismic reservoir prediction, the reservoir type of the Dun 2 Fault Block E2d12 is considered to be lithology upward dip pinch out reservoir, the lithologic reservoirs are mainly developed in the middle and lower part of the first Member of Dainan Formation, and the reservoir forming conditions is complicated. There are two main control factors of the lithologic reservoir-forming in the work area, the first one is the mudstone-dominated strata with thin sandstone beds which have been formed in shore-shallow lake subfacies in the middle and lower parts of the first Member of Dainan Formation, and the second is the faults that communicate oil sources in Funing Formation.