Production performance of heavy oil deposits in Xinjiang oilfield developed by vertical-well cyclic steam stimulation (CSS) is increasingly challenged by reservoir heterogeneity, which is comprised of original sedimental heterogeneity and steam-induced heterogeneity. In order to understand the impacts of sedimental heterogeneity and high-speed steam injection to steam conformance, and strategies to maximize steam swept volume, a series of experiments were designed and implemented. Three-tube coreflooding experiments were performed to study the steam displacement dynamics under heterogeneous conditions, and a high-temperature plugging agent was developed. The coreflooding experiments indicate that the injection conformance deteriorates once the steam breakthrough occurs in a high-permeability tube, leaving the oil in the medium and low permeability tubes being surpassed. The optimized plugging agent could resist high temperatures over 260 °C and its compressive strength was 13.14 MPa, which is higher than maximal steam injection pressure. The plugging rate of high permeability core was greater than 99.5% at 220–280 °C with a breakthrough pressure gradient over 25 MPa/m. The field test validated its profile improvement feasibility with cyclic oil, 217.6% of the previous cycle. The plugging agent optimized in this study has significant potential for similar heterogeneous reservoirs.