Erdaoya tunnel in the highway connecting Shiyan (Hubei province) and Manchuan, (Shanxi province) was studied in the study. Various problems occurred in the construction of the tunnel, including large deformation of surrounding rocks, cracks of preliminary supports and secondary linings as well as creeping down and collapse of surrounding rock masses along schistosity planes. In which, the most serious problem was large deformation of surrounding rocks, which not only dramatically delayed the normal construction progress of the tunnel, but also brought a huge challenge for the safety of builders. In order to solve this problem, detailed investigations were made on site in the study to reveal the regional geological, engineering geological and hydrogeological conditions of the tunnel. By conducting geo-stress measurement on site, the characteristics of geo-stress field of Erdaoya tunnel were analyzed from four aspects, including magnitudes of stress, coefficient of lateral pressure, orientation of stress and the relationship between magnitudes of geo-stresses and depths. By applying the DIPS software for interactively analyzing geological locator data, structure characteristics of rock masses were analyzed for preferred structural planes and schistosity planes in the tunnel site. Furthermore, the authors tested the physical and hydrological properties of the rock specimens collected on-site. So various physical properties (density, void fraction, and wave velocity) and water absorption hydrological property of schist were obtained, which provide underlying parameters support for the deformation and support of surrounding rocks of the tunnel.