The shale gas has been becoming the focus of unconventional hydrocarbon resource. In order to evaluate the shale oil and gas, it is the foundation to study the lithologic characteristics in detail, and it is necessary to compare the thin section identification results with the logging lithology. On the exploration research in Jiyang depression and analysis of collected representative data of mudstone/ shale in America and China, a multi-factors identification scheme on mudstone and shale is put forward, according to the current various classification and discrepancy of nomenclature. The color, structure, texture, organic matter, texture and mineral constitute is the requisite factors to describe and identify the lithofacies. The oil shale or oil source rock should be subdivided in view of graded evaluation. It is very helpful to unify the thin section identification results with the logging lithlogy.