As the core city in northwestern China, Xi'an has suffered from serious O3 pollution in recent years. An observational model, coupled with the Master Chemical Mechanism (V3.3.1) and comprehensive data, analyzed atmospheric oxidation capacity (AOC), O3 formation mechanism, precursor sensitivity and control strategies in Xi'an. The study examined two periods (period I and II), with notable temperature and humidity differences. Despite lower precursor levels in period I, an O3 episode (peak value: 102.68 ppb) occurred only in period I, highlighting the crucial influence of meteorological conditions. Higher removal rate of primary pollutants occurs in period I, but meteorological conditions may not alter the dominant factor of AOC. Period I exhibited markedly high OH reactivity, with aromatics, alkenes, and NOx being the main contributors. HONO photolysis (50.78%) in the morning and O3 photolysis (34.13%) in the afternoon were the main HOx sources in period I, while HONO photolysis (62.86–80.68%) was significant at daytime for period II. Higher temperatures in period I accelerated all reaction rates involved in radical cycling, especially emphasizing RO2 + NO → RO + NO2. The results of sensitivity analysis showed that O3 sensitivity regime is VOC-limited in Xi'an, but the specific reactive species target VOC reductions emissions exhibited discrepancies for two distinct periods. A 20% decrease in VOCs and a 50% decrease in NOx (VOCs/NOx = 0.4) was proposed to be the optimal solution to achieve the O3 control target in period I. This study enhances our understanding of O3 formation under different meteorological conditions and provides scientific evidence for O3 pollution abatement policies in northwestern China, with potential applicability to other cities in this region and similar countries.