Abstract: After ten years of water injection development, the water cut rate reached to 80% in 214-block of Yanchang oilfield, there are some problems existed at present, such as short effective period of water injection, fast rising rate of water cut and poor water driving effect. To get the effective treatment plan, improve the recovery efficiency and obtain economic benefits, the Eclipse numerical simulation of black oil model was applied. In the dynamic matching of production in low permeability reservoir, the characterization of the artificial fracture permeability was conducted. In the fitting of moisture content, the relative permeability adjustment and water saturation modification method were adopted to ensure the reliability of the model. Based on the optimization of numerical simulation of the injection volume and the plugging position, according to the circulation volume of 0.3 ~ 0.5 PV injection and the pore volume of 0.06 ~ 0.08 PV injection, the oil displacement agent and the surfaceactive agent were finally determined. The water plugging position of oil well is 2/3 of the distance from oil wells. According to the result of numerical simulation model optimization, the field measures were carried out and the effect was good.