Using the modern tectonic geology theories and methods such as the plate tectonic analysis, the paleo-structure analysis, the structural-lithofacies analysis, and the fault related fold and petroleum system, and combining with the seismic data, well drilling data and the circumferential field geology, study on the structural characteristics and petroleum prospect in the Tarim Basin has been carried out. Results show that the Tarim Basin is a large superimposition and combination basin with continental crustal basement, composed of a Paleozoic craton and Meso-Cenozoic foreland basins. The characteristics of the basin are: the kernel part of the basin is the marine facies Paleozoic craton, superimposed 4 continental facies foreland basins. Though the scale of the paleozoic craton of the Tarim Basin is relatively small, the structure is steady. The petroleum prospect of the Paleozoic craton is: multiphase pool-generation and accumulation controlled by ancient uplift. The Meso-Cenozoic foreland basins in the Tarim Basin, which are distributed on the cratonic circumference and are a long-term subsidence, turned into rejuvenated foreland basins after the Meso-Cenozoic period. The petroleum prospects are: coal-bed generating hydrocarbon, abundant natural gas, pool-generation in later and recent periods, the oil and gas distribution controlled by the foreland thrust belt. The structural characteristics of Tarim provide it with a superimposition and combination petroleum system of multiple resources, multiple reservoirs and multiphase pool-generation. The oil and gas exploration prospect covers two large fields: the Paleozoic craton and the Meso-Cenozoic foreland thrust belt.