The development of edge-bottom water heavy oil reservoirs typically involves short water-free production period and a rapid increase in water cut, leading to generally low oil recovery factors. Combining the advantages of foam and viscosity reducers for composite development can effectively address the challenges in edge-bottom water reservoirs; however, the mechanism of action remains unclear. In this study, the concentrations of foaming agent and viscosity reducer were initially determined using a foam evaluator and an Anton Paar rheometer. Subsequently, a 2D large flat plate model was employed to conduct a composite group production experiment after water flooding, and then the change in oil saturation during flooding was analyzed by measuring electrical resistance. Finally, the dynamic curves of flooding were compared to analyze the mechanism of water control and oil stabilization (WCOS). The results indicate that the 2D large flat plate model and the method of inverting saturation field maps can effectively simulate the oil-water flow behavior during the composite flooding process after water flooding. The synergistic mechanism of N2 foam controlling bottom water coning and CO2 enhanced viscosity reducer to reduce viscosity in deep areas was revealed, increasing the overall recovery factor by 10.3% compared to water flooding. The mechanism of the combined oil recovery is clarified, which providing a reference for formulating WCOS plans following water flooding.