Geothermal resources are green and clean energy, with the characteristics of energy saving, environmental protection and sustainable utilization. Its development and utilization can accelerate the development of local tourism economy. Liudonglou area is located to the east of Rizhao Qingdao fault. Affected by it, the structure is well developed and the geological conditions of thermogenesis are good. In this paper, by means of shallow geothermal measurement, geophysical exploration and temperature measurement hole, the characteristics and burial conditions of heat reservoir in this area are found out, and the conceptual model of heat reservoir is established. According to the model analysis, the groundwater is heated by deep heat source, the temperature rises, and forms stagnation when encountering structural intersection area, and dissolves with surrounding rock, forming geothermal fluid with higher temperature and minerals, Finally, it is transported to the surface along the fracture zone, The results show that the buried depth of the constant temperature zone is 25~35m, the temperature of the constant temperature zone is 16.2 ℃, and the geothermal gradient of the temperature measuring hole is 2.12 ℃/100m. At the same time, chemical composition characteristics of geothermal fluid in the study area are analyzed. According to quality evaluation of geothermal fluid, main development and utilization directions of geothermal water in the study area are physical therapy, bathing, heating, etc. Finally, the feasibility of the development and utilization of this area is analyzed. It will provide some references for searching geothermal resources in similar granite areas.