The principle and method for sequence stratigraphy are applied to the establishment of the framework of Mesozoic sequence stratigraphy in Yanqi basin. This framework, classifying the Mesozoic sequence stratigraphy into four sequences, is used to analyze the stratigraphic features of different sequences, sequence evolution, and spreading of the sedimentary systems in different systems tracts. The research shows that two sedimentary source systems, southern and northern ones, are present in Yanqi Mesozoic basin. This basin is dominated by the fluvial and limnetic shallow water deposition. The lacustrine water body is shallow and its distribution is limited. The progressive systems tract in Sequence III is marked by the peak lacustrine growth period. This paper also discusses the potential horizons and zones favorable for the growth of subtle traps.