The Scientific Drilling Project of Gas Hydrate in Qilian Mountain permafrost was implemented during 2008~2009. Based on a study of ten aspects of gas hydrate characteristics, the authors consider that gas hydrates mainly occur in Middle Jurassic Jiangcang Formation and hosted under the permafrost zone in the 133.0~396.0 m interval. The reservoir rocks of gas hydrate are composed of siltstone, oil shale, mudstone, fine sandstone and a small amount of medium-grained sandstone. It is thus concluded that the fracture system plays an important role in the control of the distribution of gas hydrate in this area.