We present the first successful application of three-component seismic data to thin interbedded reservoir characterization in the Daqing placanticline of the LMD oilfield. The oilfield has reached the final high water cut stage and the principal problem is how to recognize the boundaries of sand layers that are thicker than 2 m. Conventional interpretation of single PP-wave seismic data results in multiple solutions, whereas the introduction of PS-wave enhances the reliability of interpretation. We analyze the gas reservoir characteristics by joint PP- and PS-waves, and use the amplitude and frequency decomposition attributes to delineate the gas reservoir boundaries because of the minimal effect of fl uids on S-wave. We perform joint inversion of PP- and PS-waves to obtain V P/V S, λρ, and μρ and map the lithology changes by using density, λρ, and μρ. The 3D–3C attribute λρ slices describe the sand layers distribution, while considering the well log data, and point to favorable region for tapping the remaining oil.