Aiming at utilization status of China’s small particle oil shale, in the condition of laboratory, self-developed instrument of fluidized bed thermal cracking is used to conduct experimental researches on producing shale oil through thermal cracking of small-particle oil Shale. Through the orthogonal experiment, the optimal technological parameters on producing shale oil through thermal cracking are optimized. The experimental results have shown us that under the optimal technological conditions, oil productivity is at about 5%. Therefore, the technology of fluidized bed thermal cracking is an effective new method for producing oil through small-particle oil shale.