This paper researches geo-fracture characteristics and formation mechanism of Fushun through RS, geology, geophysical survey, chemical prospecting, survey and drilling exploration and others. The research results indicate that the material loss of Fushun coal mining goaf causes the initial stress field to the unbalanced, which brings up the lateral stretch attraction. These results in partial activation effect of fault and the change of rock geologic structure, then the change leads to the geo-fracture. Also it points out the geology environmental condition is a master factor to geo-fracture formation, and the coal-mining is inducing factor. The results provide basic theory and policy-making rules to understanding the geo-fracture mechanism and forecasting the development in Fushun.