This study focuses on the organic-rich mud shale in the Upper Palaeozoic transitional facies in the southeastern margin of the Ordos Basin. It systematically analyzes the shale gas accumulation conditions of the organic-rich mud shale in the Lower Permian Shanxi-Taiyuan Formation, including the thickness, distribution, organic matter type and content, thermal maturity, reservoir space, gas-bearing property, and rock brittleness. The results show that the thick dark mud shale contains a high organic matter content, is a suitable kerogen type for gas generation, and exhibits moderate thermal evolution, providing excellent conditions for hydrocarbon accumulation. Residual primary pores formed by shale compaction, secondary pores formed by organic matter hydrocarbon generation, clay mineral transformation and dissolution, and fractures provide suitable reservoir spaces for shale gas. The shale in the study area has a higher gas content than the shale strata in the marine basins of the United States. In addition, the content of brittle minerals such as quartz is higher, and Poisson’s ratio is lower, facilitating the subsequent transformation. The accumulation conditions indicate the high potential of the study area for shale gas exploration and development. The geological analogy method is used to compare the study area with five major shale gas basins in the United States. The results indicate that the shale gas resources of the Shanxi-Taiyuan Formation in the study area are in the range of 2800–
3200
×
10
8 m3. The primary controlling factors affecting shale gas reservoirs in this area are the abundance of organic matter, thermal maturity, shale thickness, and quartz content. Favorable areas are predicted based on these factors.