Mud loss, the most serious formation damage in oil and gas well drilling engineering, is also an unresolved technical issue. To prevent mud loss, it is necessary to accurately understand and identify three key factors of mud loss, including the location of the loss, the time of occurrence, and the severity of the loss. The diagnosis of mud loss is a prerequisite for the proper formulation of mud loss control techniques. It emphasizes the integration of pre-drilling, drilling and post-analysis information to describe, characterize and predict potential loss zones. A mathematical model for loss probability evaluation was developed based on the theory of engineering fuzzy mathematics. It combines logging anomaly features and engineering data to predict the location of losses from drilling mud, and develops a loss formation identification method. Hydraulic fracture deformation is predicted by stress-sensitive experiments and numerical simulations, and the severity of the loss channels is quantitatively evaluated. Loss pressure models have been developed based on mud loss mechanisms, and loss pressures for hydraulic fracture creation, connection and extension have been applied to identify loss mechanisms and types. Mud losses can be identified by unusual engineering characteristics, including sudden changes in drilling times, cuttings, and mud logging. Real-time logging parameters can be used to monitor the loss process and predict loss trends. A framework for loss diagnosis techniques has been developed, which can help in successful mud loss control.