Objectives: The aim of this study is to examine the favorable target area for hydrocarbon exploration of Upper Paleozoic in the Linfen—Yuncheng Basin. Previous exploration demonstrates the Cenozoic hydrocarbon resources potential is not optimistic for lack of effective source rocks as well as other favorable conditions for reservoir forming. Whereas recent continuous breakthroughs of natural gas exploration in Upper Paleozoic strata of adjacent areas such as the Ordos Basin and Qinshui Basin etc. provide significant implication for preCenozoic exploration in the Linfen—Yuncheng Basin. Methods: Based on gravity and magnetic data, combined with plenty of data from borehole drilling in recent years, the distribution pattern of Upper Paleozoic beneath Cenozoic strata is reconstructed. The quality of potential source rock was evaluated by pyrolysis experiment and maturity data. Results: It shows the Carboniferous— Permian systems mainly developed in the central—northern part of the Linfen depression and northwestern part of E’mei uplift. Inferred from neighboring outcrops, the hydrocarbon source rocks are well developed in this basin. The maturity of organic material generally reaches middle—high thermal evolutionary stages. Conclusions: Integrated analysis of postsedimentary modification, burial history, hydrocarbon generating history and preservation conditions and so on, the Linfen sag located in the northern part of this basin is selected as a relative favorable area for coalbed methane or conventional natural gas exploration.