Yellow River delta of Dongying hosts abundant geothermal resources. Based on the analysis of geothermal geology and ions, trace elements, harmful substances and radioactivity of geothermal water, this study analyzed the development and utilization of geothermal resources. At present, geothermal resources are mainly used for heating, bathing and breeding. At the same time, society also attaches great concern over the problems of unreasonable exploitation of geothermal resources and the negative impact of tail water discharge on the environment. This study proposed some suggestion such as resources protection and environmental treatment using cascade development mode, improving tailrace discharge, dynamic monitoring of geothermal wells, etc.