Shallow seam coal field has the largest coal reserve in China. Mining in shallow depth causes serious problems, and subsurface dewatering is a major issue. In this paper, the physical simulating models were prepared to study overburden movement and aquiclude stability in the shallow seam mining of Yushuwan Coalfield, China. According to the characteristic of clay aquiclude and bedrock in the overburden, the proper simulation materials for simulating the plastic clay aquiclude layers and brittle bedrock layers were determined by the stress-strain tests and hydrophilic tests. The physical simulating models of solid medium and two phases of solid-liquid medium were carried out to simulate the failure and caving process of the roof and overburden, as well as the subsurface water seeping. Based on the simulation, it was found that the movement of clay aquiclude follows the movement of the underlying bedrock layers. The stability of aquiclude is mainly affected by cracks in fracture zone. The tests also showed that the best way to control the stability of aquiclude is to reduce the subsiding gradient, and there is a possibility of ground water conservation under longwall mining in Yushuwan Mine. This research provides a foundation for further study on mining dewatering and water conservation.