The use of flue gas-assisted gravity drainage technique（FGAGD）has achieved good application results in the foreign oilfields. A large amount of flue gas were produced in the process of heavy oil thermal recovery in Xinjiang Oilfield，and a large number of high-inclined and thick-layered oil reservoirs were distributed near the flue gas source. If these reservoirs can be developed with FGAGD，oil recovery will be enhanced obviously，and greenhouse gas emissions will be reduced to protect the ecological environment. To this end，through a detailed analysis of the successful production cases with GAGD in foreign countries，the application conditions of GAGD technique were summarized. On this basis，comprehensively considering the current resources situation in Xinjiang Oilfield and the availability of the evaluation method，the evaluation indexes and standard of reservoir selection for FGAGD were put forward and classified by the necessity and significance. The method of reservoir selection and evaluation for FGAGD was proposed. The reliability of the technique was then verified by applications to eleven oilfields. The method was applied to discuss the feasibility of FGAGD in the area around Hong153 in Xinjiang Oilfield from several aspects including the flue gas resource，well conditions，geological conditions according to the reservoir screening criteria. The final reservoir selection index with FGAGD was 9.39，which showed the feasibility of FGAGD in the area around well Hong153. The flue gas injection test was carried out at the top of the reservoir Hong153 in December 2017. A remarkable oil increase was observed in the surrounding well from 9.5 t/d to 20.3 t/d，which verified the correctness of the method.