Shale gas is a relatively clean-burning fossil fuel, produced by hydraulic fracturing. This technology may be harmful to the environment; therefore, environmentally friendly methods to extract shale gas have attracted considerable attention from researchers. Unlike previous studies, this study is a comprehensive investigation that uses systematic analyses and detailed field data. The environmental challenges associated with shale gas extraction, as well as measures to mitigate environmental impacts from the source to end point are detailed, using data and experience from China’s shale gas production sites. Environmental concerns are among the biggest challenges in practice, mainly including seasonal water shortages, requisition of primary farmland, leakage of drilling fluid and infiltration of flowback fluid, oil-based drill cuttings getting buried underground, and induced seismicity. China’s shale gas companies have attempted to improve methods, as well as invent new materials and devices to implement cleaner processes for the sake of protecting the environment. Through more than 10-year summary, China’s clean production model for shale gas focuses on source pollution prevention, process control, and end treatment, which yield significant results in terms of resource as well as environmental protection, and can have practical implications for shale gas production in other countries, that can be duplicated elsewhere.