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Shale oil production is vital for meeting the rising global energy demand, while primary recovery rates are poor due to the ultralow permeability. CO2 huff-n-puff can boost yields by enabling key enhanced oil recovery mechanisms. This review examines the recent research on mechanisms and formation factors influencing CO2 huff-n-puff performance in shale liquid reservoirs. During the soaking period, oil swelling, viscosity reduction and CO2-oil miscibility occur through molecular diffusion into shale nanopores. The main recovery mechanism during the puff period is depressurization with oil desorption and elastic energy release. The interplay between matrix permeability and fracture network directly determines the CO2 huff-n-puff performance. Nanopore confinement, wettability alterations, and heterogeneity also significantly impact the huff-n-puff processes, with controversial effects under certain conditions. This work provides an integrated discussion on the mechanistic insights and formation considerations essential for the advancement of CO2 huff-n-puff application in shale reservoirs. By synthesizing the recent research findings, we aim to spotlight the key challenges and opportunities in considering reservoirs for this process, thereby contributing to the advancement of CO2 huff-n-puff applications for enhanced oil recovery. [ABSTRACT FROM AUTHOR]