Liaohe Rift is the Liaoning section of the Tan-Lu fault system, which passes through Bohai Sea and is elongated toward the north. Two main subparallel faults moved violently during the Paleogene in the area, and two columns of asymmetrical depressions stretching in NE-SW direction were formed. The oil reservoirs in the basin of Paleogene age can be classified mainly into three types: (1) alluvial fan, (2) fan-delta, and (3) sublacustrine fan based on the studies of the colour and composition of mudstones, sedimentary structure of sandstones and rhythm of sequences. Variation in tectonic activity caused differences in provenance; the sandbodies therefore have their own characteristics. Based on the above, a sedimentary model for the Liaohe Rift can be established: from the margin toward the centre of the basin, the types of sedimentary facies were respectively alluvial fan, floodplain, fan-delta, subaqueous canyon and sublacustrine fan, fan-delta and sublacustrine fan formed the main facies, and were located on the downfaulted side of the faults, while the floodplain and subaqueous canyon were the transition facies. The greater the concentration of faults, the more intense was their tectonic activity, the greater the sediment supply from the upfaulted blocks and the lower sediment maturity and less well developed are the transition facies. Generally, during lake flooding, the greatest tectonic activity took place at the steep side of the basin. During subaerial sedimentation, the least activity happened along the strike direction of the basin. By using this model, the sedimentary bodies formed in different structural episodes and portion of the basin can be interpreted.