Abstract: In this study, an oil-producing alga was isolated and identified from soil at Pangquangou National Nature Reserve (Shanxi province, China), and cultivated under axenic conditions. Based on morphological observations, it was similar to the genus Chlorella. The phylogenetic analysis according to ribulose-bisphosphate carboxylase gene (rbcL) and 18S ribosomal RNA (18S rDNA) showed that it has the highest homology with Ch. vulgaris, so the strain was identified as Ch. vulgaris PQG67. It produced a lipid content within 30% after continuous culture with different light intensities, as well as more than 40% after affecting by salt (NaCl) stress. Fourier-transform infrared spectroscopy (FTIR) of the produced oil showed lipid band intensity from spectra vCO at 1634/cm, and continued to increase in Ch. vulgaris PQG67 cells during experimental test. The alga possessed high biomass and oil-producing potentials for utilization in biodiesel production.