Doing the propagation path correction, site effect correction, and instrument response correction, etc.for the observational S-wave data, the authors obtained source spectra for the small- and moderate-earthquakes.Using Brune Source Model and by means of generalized inversion technique, the authors calculated the stress drop of 335 earthquakes (MS2.0~5.3) in Xiaojiang fault zone and its adjacent areas. According to the seismicity in the zone, the authors analyzed the strong earthquake risk in different segments of the zone. On the basis of the precisely-relocated results from the simultaneous inversion of location and velocity structure, the authors also analyzed the variation of stress drop and focal depth, and the extension and distribution of the zone in the deep earth.