CO2 fracturing is a promising technology for oil field development in tight, continental deposits, with potential advantages of enhanced oil recovery (EOR), CO2 sequestration, and water conservation. Compared with CO2-EOR techniques, such as CO2 huff and puff and CO2 flooding, CO2 can interact with reservoir rock and fluid under higher pressure conditions during fracturing, resulting in CO2 stimulation and sequestration effects that differ from those that occur during conventional CO2-EOR. In this paper, the CO2 interactions between CO2 and reservoirs in continental tight oil reservoirs under fracturing conditions are systematically studied through laboratory experiments. The results show that under high pressure, CO2 effectively changes the pore structure through the extraction of hydrocarbons, dissolution of the rock matrix, and migration of minerals. CO2 dissolution of the rock matrix can significantly increase the number and complexity of fractures. Furthermore, CO2 has a higher solubility in formation fluid under high-pressure conditions. Given the higher pressures, CO2 forms a miscible phase with crude oil, diffuses more deeply into the formation, and reacts fully with the reservoir minerals and fluid during CO2 fracturing. Accordingly, CO2 can improve the permeability of the reservoir and flowability of crude oil significantly. Hence, CO2 fracturing can enhance oil recovery and CO2 sequestration more effectively. Core displacement experiments indicate that oil recovery of CO2 soaking process after CO2 fracturing is 36%, which is 12% and 9% higher than those of CO2 huff and puff and CO2 flooding with 5 pore volume, respectively. Field tests show that average oil production after CO2 fracturing is 1.42 times higher than that after CO2 flooding, which further validates the advantage of CO2 fracturing and demonstrates its huge application potential.