Flowback water from shale gas well drilling has a high TDS (total dissolved solids) content, ranging from 5000 ppm to 261,000 ppm, along with a TSS (total suspended solids) content of 3003000 mg/L. Recently, the rapid expansion of shale gas production in Marcellus Formation has raised serious environmental concerns about the large amount of flowback water in this area. A process based on ceramic membrane filtration and ion-exchange was studied for the treatment of the flowback water from Marcellus Formation. The studied process contains a combination of two MF (microfiltration) membranes, 1.4 mu m and 0.2 mu m respectively, and mixed bed ion-exchange. After treatment, all TSS and >99% of TDS were successfully removed from the flowback water to meet the criteria for surface discharge. The cost estimation of the treatment is approximately 18.4 $/m3, 4070% lower than the cost estimate of the DEP(Department of Environmental Protection in Pennsylvania).