The lithology for Cambrian strata in Xuzhou area was mainly the carbonates, leopard limestone in a multi thick layers was occurred. The study of lithologic characteristics of leopard limestone could provide foundations for the judgment and reduction of the local paleogeographic environment. Based on the discovery of oil and gas indications for the carbonate rocks, the authors made a comprehensive study on leopard limestone, and it was of geological oil and gas significance. The authors studied the lithologic characteristics of leopard limestone exposed in Cambrian strata in Xuzhou area and analyzed its formation mechanism in details. The study showed that the dolomitization of leopard limestone was occurred in its early diagenesis, the environment of diagenesis was low salinity return permeability on conditions of mixed hydrodynamics.