Gas hydrate, an insulated solid with high resistivity, has the basic physical property for electromagnetic exploration. In Muli permafrost area, TEM experiments were performed where gas hydrate samples were acquired by core. In the apparent resistivity pseudo-sections of TEM line, there exist a continuous high resistivity layer in the shallow part and a discontinuous high resistivity layer in the deep part. The shallow high resistivity layer is confirmed as tundra depending on the temperature logging of gas hydrate hole in Muli permafrost. The deep high resistivity layer, which is under the tundra, lies in the gas hydrate stability zone (GHSZ) of Muli area. Its depth corresponds to the depth of gas hydrate-bearing layer in known drill holes. According to the experiment, the preliminary conclusion is that transient electromagnetic method can be used in gas hydrate exploration in permafrost area based on its high resistivity detection capability.