Because of the characteristics of transience, widespread presence, periodicity and isochronisms, flood deposition that under the control of climate can be used as a key bed in stratigraphic division and correlation. By identifying event deposit and normal deposit under different scale periods and combining the theory of base level cycle, the writers classified the 1st Member, Kongdian Formation—the lower part of 4th Member, Shahejie Formation, Eocene, in the Linpan area, Huimin Sag in Jiyang Depression, Northern Shandong, into three order cycle sequences: short term, medium term and long term base level cycle sequences. Short term base level cycle was characterized by combination of different types of sedimentary micro facies which formed in the course of flood period and inter flood period; medium term cycle was characterized by an integral deposit that consist of flood deposit and inter flood deposit; long term cycle were characterized by stacking of several medium term cycle sequences. Writers divided the 1st Member, Kongdian Formation—the lower part of 4th Member, Shahejie Formation, Eocene, in the Linpan area, Huimin Sag, Jiyang Depression, into 5 long terms, 16 medium terms and a certain number of short terms of cycle sequences, performed fine stratigraphic correlation to the first long term, then built up the sequence division and correlation model of redbeds under the control of arid climate after the researches all above.