Oyster reefs are an important coastal habitat providing essential ecosystem services, including water filtration, habitat provisioning, shoreline stabilization, and nutrient retention. The Liyashan oyster reef is located inshore of Dongzhao Port, Haimen County, Jiangsu Province, China. However, the natural intertidal oyster reef is rapidly degrading due to high sedimentation, habitat loss, and overfishing, with its area reduced by 30% during 2003-2013. To protect the important biogenic reef, a restoration project was initiated in 2013-2014. We recycled 100 tons of oyster shells (≥ 6 months) from the oyster aquaculture zone in Xiangshan Bay as substrate (cultch) for oyster larval setting, where 16000 nylon bags (diameter:20 cm, height:50 cm, mesh:2 cm) were filled with old oyster shells. In early July 2013, the oyster shells were placed in the Liyashan waters, creating a habitat for young oysters to attach and grow to ensure their abundance. We constructed 53 small reefs (24 single-layer reefs[SLR] and 29 multi-layer reefs[MLR]) at five restoration sites within the Liyashan area. Oyster abundance was significantly higher in MLR than in SLR at each of the four sampling periods, but showed a significant decline with reef development. The mean shell height of oysters in the restored reef significantly increased during two periods (from September to November 2013, and March to May 2014) (Kruskal-Wallis test, Q=10.519,Q=6.527,P<0.05), but oysters stopped growing in the overwintering period (Nov 2013 to March 2014) (Q=0.35,P>0.05). Forty-one species of resident benthic macrofauna were recorded at the restored reefs. Although there were few changes in species richness, the mean density and biomass showed significant increases with reef development that were similar to the adjacent natural oyster reef, but significantly higher than at the non-restored zone. The mean total density and biomass of benthic communities were 5.1 and 3.1 times higher, respectively, at restored than at non-restored reefs.MDS plots showed that resident benthic communities differed significantly between the restored and adjacent natural reefs (ANOSIM, P=0.001), which were mainly attributed to higher densities of sipunculid worms (Phascolosoma esculenta), rock snails (Thais luteostoma), polychaete worms (Perinereis nuntia), and Asian shore crabs (Hemigrapsus sinensis). Oyster reef restoration in Jiangsu Province was considered to be successful, improving the oyster population, reef area and density, and biomass of resident macrofauna.