Flow unit is the smallest macrogeological one in reservoir, which reflects reservoir lithology, physical properties and microscopic pore throat characteristics. According to the characteristics of Badaowan Reservoir in 7 block, with the variation law of permeability, porosity and oil saturation, and based on the analysis of the definition of flow unit, this paper uses fuzzy cluster analysis to classify and evaluate the flow unit of Badaowan Reservoir, which solves the problem of reservoir evaluation. The reservoir flow units are divided into 4 types, the analysis of plane surface on each unit is made, so does to plane distributive maps. Research shows that the physical properties and storage ability of type-I is the best and that type-Ⅳis the worst. The result is of guidance to the development adjustment of reservoir.