Abstract: Process system engineering (PSE) approach and tools are widely applied in Sinopec technical innovation activities. Industrial application incentives, PSE implementation steps and typical industrial results are demonstrated with several examples, where various PSE tools are applied for novel technology development, new catalyst design and new product innovations. Mathematical programming and other PSE approaches are introduced to keep close contact with technical innovations and industrial practices, with emphasis on PSE researches to optimize crude oil processing scheme and promote new instruments developments. New trends and directions of PSE applications are put forward.