In order to reveal the control effect of overlying strata movement by isolated coal pillars during mining along inclined direction in western shallow working face, Daliuta coal mine is taken as engineering background, the control effect of overlying strata collapse, movement and deformation by isolated coal pillars and the characteristics of stress change in mining face are analyzed by using similar material simulation test method, and the rational setting of coal pillars is determined. The results show that in the direction of mining area inclination, each working face will form an independent caving zone with isolated coal pillars between them, which effectively separates the lateral penetration and vertical expansion of the caving space in adjacent working faces and divides off the settlement curve of overlying strata on adjacent working faces; the caving height of overlying strata is closely related to the mining length of working face inclination not filled with coal pillars. The collapse height of overburden rock decreases when sublevel mining is more fully exploited. In the process of coal seam mining, the No.1^# to No.4^# pillar with a width of 30 m is in a stable state, but the safety of No.3^# and No.4^# pillars is low. The reasonable pillar widths of No. 2^-2 and 5^-2 coal seam are 18.6 m and 24.5 m, respectively. The optimum offset of upper and lower coal pillars is 95.5 m to avoid the concentrated stress of pillars and control the uniform settlement of the surface.