Abstract: The saline lacustrine mixed shale reservoirs are developed in the Middle-Lower Permian formations of Junggar Basin, which are typically represented by Lucaogou Formation in Jimusar sag and Fengcheng Formation in Mahu sag. At present, they have entered the stage of comprehensive exploration and development, and become an important type of continental shale oil and field for increasing reserves and production in China. By reviewing the progress of exploration and development of Permian shale oil in Junggar Basin, this paper systematically summarizes the formation conditions and enrichment model of Permian shale oil. Further, based on the theoretical understanding of the whole petroleum system for the orderly accumulation from conventional oil to tight oil to shale oil in Fengcheng Formation of Mahu sag, the resource potential and exploration direction of the Middle-Lower Permian shale oil in Junggar Basin are explored herein. The results show that the Permian saline water environment in Junggar Basin not only promotes the development of large-scale high-quality source rocks with medium-high maturity, but also controls the mixed sedimentation of terrigenous clasts, endogenous carbonates and volcanic tuffaceous particles, forming a set of fine-grained mixed rocks such as dolomitic siltstone or fine sandstone, dolomitic mud shale, and argillaceous dolomite widely distributed in the sag. Meanwhile, three types of efficient source-reservoir assemblage have formed under the influence of high-frequency water turbulence. The shale oil has the mechanism of pressurization during hydrocarbon generation, transport by micro fractures, hydrocarbon generation in source rock and accumulation in adjacent reservoir, showing the enrichment model of oil coexistence in two occurrence states, sweet spots controlled by lithofacies, and oil enrichment controlled by sweet spots. The Middle-Lower Permian source rock strata in Mahu sag, Shawan sag, Well Pen-1 West sag and Fukang sag are favorable exploration areas for the further exploration of shale oil and gas, and have great exploration potential for the collaborative exploration of conventional-unconventional oil and gas.