The distribution characteristics of the oil-water contact are the basis for the reservoir exploration and development and reserves evaluation. The reservoir with a tilted oil-water contact has a unique formation mechanism, and the understanding of its distribution and formation mechanism will directly affect the evaluations for the reservoir type, well deployment, selection of well pattern and type, determination of test section, and reserves evaluation. Based on the analysis of reservoir characteristics, petrophysical properties and geological structure in 40 reservoirs worldwide with tilted oil-water contacts, the progress of the research on the formation mechanisms of titled oil-water contacts is summarized in terms of the hydrodynamic conditions, reservoir heterogeneity, neotectonic movement and oil-gas exploitation. According to the formation mechanism of tilted oil-water contacts and the needs of exploration research, different aspects of research methods are summarized and classified, such as the calculation of equipotential surfaces for oil and water in the formation, analysis of formation pressure and analysis of reservoir physical properties and so on. Based upon statistical analysis, it is suggested that the degree of the inclination of the oil-water contact be divided based on the dip of oil-water contact (DipTOWC). The tilted oil-water contact is divided into three categories: large dip (DipTOWC≥55 m/km), medium dip (4 m/km≤DipTOWC<55 m/km), and small dip (DipTOWC<4 m/km). The classification and evaluation method can be combined with structure amplitude and reservoir property. The formation mechanism of domestic and international reservoirs with tilted oil-water contacts are summarized in this paper, which have important significance in guiding the exploration and development of the oilfield with tilted oil-water contacts, reserves evaluation, and well deployment.