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Heavy oil reservoir distribute abroad in China even and in the world. Proved heavy oil reserves is more than 300 billion tons all over the world. At present, explored and controlled heavy oil reserves in China is about 2 billion. Because the horizontal well technology has some advantages, such as enhancing production capacity, quickening exploitation rate and reduce advancing degree. Horizontal well technology has became the strongest way and main method for enhancing production rate in heavy oil reservoir. This technology is used for increase the output with steam huff-puff and the steam injection efficiency with steam stimulation. Although the horizontal well has obtained good benefit in heavy oil reservoir, the horizontal well technology meets many difficulties, such as the high requirement to heavy oil reservoir and the great difficulty in filtering zone. In addition, the research of the seep mechanism of horizontal well, branched well, multi layer-bottom well in heavy oil reservoir lays behind drilling technology. Some traditional seep mechanism, exploitation theory, and production technique has not been suitable for heavy oil reservoir. Therefore, researching horizontal well seep mechanism and application in heavy oil reservoir has very important theory reference value and realism meaning.In this paper, aiming at the existing problem of horizontal well in heavy oil reservoir, a new horizontal well production capacity model was built for heavy oil reservoir and horizontal well seep mechanism was developed, and built horizontal well multi-component steam injection mathematical model and numerical model in Xinjiang heavy oil reservoir. Using the improved NUMSIP software and combining the analysis result on horizontal well adaptability and potential capacity in Xinjiang heavy oil reservoir, testify using horizontal well in Xinjiang heavy oil reservoir to provide strong evidence for well site.