Abstract: The favorable exploration blocks in the eastern depression of the North Yellow Sea are developed on the slopes of a fan-delta. Sandstone reservoisr are thin in thickness with large lateral stratigraphic variations, It is difficult to define the favorable reservoirs by conventional seismic attributes method, Howeoer Time-frequency analysis technology is the best approach for the thin bed reservoirs. By studying on the characteristics of classic time-frequency analysis method, such as Short Time Fourier Transform, Continuous Wavelet Transform, Time-Frequency Continuous Wavelet Transform and S Transform, we summarized their advantages and disadvantages and the adaptability of time resolution and frequency resolution, optimized the S transform applied in the seismic data spectrum decomposition. The actual application shows that, the seismic resolution is much improved.It man describe the formation details more clearly and identify the fault boundary more effectively, also can predict the changes in sedimentary environment and classify the sedimentary facies division, the spectral decomposition is the new methods and new technology for reservoir prediction in this area.