Abstract: The evaluation of land potential is the premise of land use optimization, which is of great significance to the efficient use of land resources and ecological protection. In the process of "geological cycle" of soil, geological formation will affect soil retention, texture structure, nutrient content and hydrological conditions, which determines initial endowment characteristics of land resources. Based on this law, the paper explores land potential evaluation and utilization optimization path. The geological formation is divided into six types:accumulation formation (Quaternary sediments), carbonate rock formation, clastic rock formation, granite formation, volcanic rock formation and gneiss formation in Chengde City.On different basin scales, land potential evaluation and utilization optimization practice based on geological formation are carried out. On the whole basin, Luanhe River Basin is divided into northern desertification grassland protection and restoration area, central water conservation (Chinese herbal medicine) development area, southern characteristic fruit development and ecological forest protection area, valley farmland agricultural land development area in Chengde City. In the small basin, it is suggested that granite and rhyolite are suitable for afforestation, glutenite is generally suitable for afforestation and dolomite is not suitable for afforestation. According to the protection and restoration of land desertification and grassland degradation in Xiaoluanhe basin, six kinds of optimization suggestions are divided, which are suitable for cultivated land, wetland protection area, afforestation area, high-quality pasture area, grassland degradation area and ecological protection area.