Abstract: Shandong Province has a wide range of geothermal resources and abundant resource reserves. According to the theory of geothermal conduction as well as the geological structure and the earth heat flow in Shandong Province, the geothermal distribution and resource quantitise were discussed in this paper. The results show that the distribution of geothermal resources in Shandong Province is strictly controlled by regional geological structure. According to geothermal genesis, they can be divided into uplift mountain deep circulation type and sedimentary fault basin conduction type. Based on geothermal genesis and thermal storage types, the province is divided into four geothermal resource areas: Ⅰ- East Shandong geothermal area; Ⅱ- Yishu fault zone geothermal area; Ⅲ-West Shandong uplift geothermal area; Ⅳ-Northwest Shandong geothermal area. The amount of geothermal resources is equivalent to 14.373 billion tons of standard coal. The current geothermal exploitation amount is less than 3% of the recoverable reserves without regard to artificial recharge, so the potential is still great. Reasonably developing and utilizing geothermal resourcs in accordance with the geothermal resources distribution characteristics, is an effective way to reduce fossil energy consumption, optimize energy structure, and improve the quality of atmospheric environment.