Abstract: In order to improve the development effect, based on the reservoir geological characteristics of block F of X oilfield, physical simulation and numerical simulation were combined to demonstrate the feasibility of SAGD(steam assisted gravity drainage) of flue gas and optimize the injection-production parameters. The experimental results show that flue gas has the function of reducing surface tension and dissolving viscosity in super heavy oil of F block. The higher the pressure and temperature, and the lower the interfacial tension between flue gas and super heavy oil. The viscosity decreasing rate of flue gas increases with solubility and decreases with temperature. The 3D physical simulation experiment shows that the flue gas assisted SAGD can reduce steam heat loss, promote the development of steam cavity, and improve the cumulative oil production and the cumulative oil-steam ratio of SAGD. This technology is feasible to improve the development effect of SAGD, and the flue gas assisted SAGD can achieve the best development effect.