Sequence stratigraphy is a form of stratigraphy that attempts to discern and understand historic geology through time by subdividing and linking sedimentary deposits into unconformity bounded units on a variety of scales. The essence of the method is mapping of strata based on identification of surfaces which are assumed to represent time lines (e.g. subaerial unconformities, maximum flooding surfaces), thereby placing stratigraphy in chronostratigraphic framework allowing understanding of the evolution of the Earth's surface in a particular region through time. Sequence stratigraphy is a useful alternative to a purely lithostratigraphic approach, which emphasizes solely based on the compositional similarity of the lithology of rock units rather than time significance. Unconformities are particularly important in understanding geologic history because they represent erosional surfaces where there is a clear gap in the record. Conversely within a sequence the geologic record should be relatively continuous and complete record that is genetically related.

Stratigraphers explain sequence boundaries and stratigraphic units primarily in terms of changes in relative sea level (the combination of global changes in eustatic sea level and regional subsidence caused by tectonic subsidence, thermal subsidence and load-induced subsidence as the weight of accumulated sediment and water cause isostatic subsidence as a sedimentary basin is filled). The net changes resulting from these vertical forces increases or reduces accommodation space for sediments to accumulate in a sedimentary basin. A secondary influence is the rate of sediment supply to the basin which determines the rate at which that space is filled.

The origin of sequence stratigraphy can be traced back to the work of L.L. Sloss on interregional unconformities of the North American craton. Sloss recognized six craton-wide sequences representing hundreds of millions of years of earth history.

In the late 1960s Sloss had several students, notably Peter Vail, Robert Mitchum, and John Sangree, who completed dissertations studying the Pennsylvanian sedimentary rocks of the North American craton and became aware that global changes in sea level could have been responsible for the numerous widespread unconformities in those rocks. During their subsequent careers as research scientists at Exxon's research division Vail, Mitchum and others pioneered the practice of seismic stratigraphy, the stratigraphic interpretation of seismic reflection profiles to understand the layering and packaging of sedimentary rocks in the subsurface using acoustic imaging.

The advent of seismic stratigraphy made it possible to identify sequences representing shorter period of time ranging in duration from tens of thousands to a few million years; and to compare the sequence stratigraphic history around the globe. This in turn led to sequence stratigraphy becoming systematized and understood to have widespread application to stratigraphic study of rock outcrops on the earth's surface as well.

During the 1980s this ushered in a revolution in stratigraphy based on the delineation of regional physical surfaces that separate the sedimentary rock into packages representing discrete and sequential periods of time and predictable patterns of sediment depositional history.

Sequence boundaries are deemed the most significant surfaces. Sequence boundaries are defined as unconformities or their correlative conformities. Sequence boundaries are formed due to the sea level fall. For example, multi-story fluvial sandstone packages often infill incised valleys formed by the sea level drop associated with sequence boundaries. The incised valleys of sequence boundaries correlate laterally with interfluves, palaeosols formed on the margins of incised valleys. The valley infills are not genetically related to underlying depositional systems as previous interpretations thought. There are four criteria distinguishing incised valley fills from other types of multi-story sandstone deposits: a widespread correlation with a regional, high relief erosional surface that is more widespread than the erosional bases of individual channels within the valley; facies associations reflect a basinward shift in facies when compared with underlying units; erosional base of the valley removes preceding systems tracts and marine bands producing a time gap, the removed units will be preserved beneath the interfluves; increasing channel fill and fine grained units upwards or changes in the character of the fluvial systems reflecting increasing accommodation space. Sandstone bodies associated with incised valleys can be good hydrocarbon reservoirs. There have been problems in the correlation and distribution of these bodies. Sequence stratigraphic principles and identification of significant surfaces have resolved some issues.

Lesser importance is attached to parasequence boundaries, however, there is a suggestion that flooding surfaces representing parasequence boundaries may be more laterally extensive leaving more evidence than sequence boundaries because the coastal plain has a lower gradient than the inner continental shelf. Parasequence boundaries may be distinguished by differences in physical and chemical properties across the surface such as; formation water salinity, hydrocarbon properties, porosity, compressional velocities and mineralogy. Parasequence boundaries may not form a barrier to hydrocarbon accumulation but may inhibit vertical reservoir communication. After production begins the parasequences act as separate drainage units with the flooding surfaces, which are overlain by shales or carbonate-cemented horizons, forming a barrier to vertical reservoir communications. Sequence stratigraphic principles have optimized production potential once reservoir scale architecture is identified and separate drainage units identified.