Abstract: The Yili basin is famous for its rich resources of coal and uranium, especiallyin the southern margin of this basin. From the angle of coal exploration, the tectonic pattern, sedimentary characteristics and coal bearing strata of the Middle-Lower Jurassic Shuixigou Group in the southern margin of the Yili basin have been studied in this paper through using the theory of structural geology, coal geology and sedimentology. After studying and analyzing the paleoclimate and sedimentary environment that related to coal accumulation, it's believed that the Shuixigou Group is a product of alluvial fan-fan delta system that formed in the warm and moist climate, whichis beneficial to the formation of peat swampenvironment, especially the Xishanyao Formation has basic conditions for forming stable and thick coal seam.This paper focuses on analyzing how the structures evolution since Millde Cenozoic era affect and control the formation and mineralization of coal. The results show that the regional tectonic background determinesthe formation and evolution of the basin, thus affecting the coal forming environment and coal potential in this studying area. The structure or structural features serve as the results of tectonic evolution after coal-forming, that is, the tectonic activities affect coal accumulation orpreservation, and the difference of tectonic activities impact the preservation state and distribution of coal seam.