Depletion exploitation of deep heavy oil reservoir with water sensitivity is not effective, so, how to choose an effective method to development deep heavy oil reservoir with water sensitivity and further improve the recovery are the technical problems urgently needed to be solved. Starting from the reservoir features, and based on injected water damage, anti-swelling agent, swelling and other physical evaluation experiments, the feasibility argumentation and optimization calculation of many recovery methods such as depletion exploitation, conventional water flooding, huff and puff of nitrogen and gas, gas flooding after huff and puff, gas flooding are carried out by reservoir simulation. Studies have shown that water injection will reduce reservoir permeability significantly. Anti-swelling agents can improve the water injection performance, but poorer than gas injection. The gas flooding after huff and puff is the best model for development of deep heavy oil reservoir with water sensitivity economically and technologically. Compared with depletion exploitation,the recovery percent of gas flooding after huff and puff rises by 19.6% and the cumulative oil production of gas flooding after huff and puff increases by 98 203.66 m3 in ten years. Research findings can provide a reference for this kind of reservoir.