The reservoir rock types of member 2-3 of Lower Shihezi Formation in Daniudi gas field mainly include lithic quartz sandstone and lithic sandstone. Their compositional maturity and textural maturity are low. Research shows that diagenesis stage of the reservoir is at A-substage and the diagenesis types are mechanic compaction, cementation, dissolution and metasomatism. The mechanic compaction and cementation are the most popular and typical destructive diagenesis in the study area, which are the main causes of low physical property. The dissolution is constructive diagenesis with relatively low degree of development, but relatively high in some areas, and it is one of the primary factors which improve the reservoir physical property. The physical property changes regularly with the burial depth.