Ou-Yang has worked at the Institute of Theoretical Physics (ITP), Chinese Academy of Sciences (CAS) in Beijing since 1989 and has served as director from 1998-2007. He is also adjunct professor at the Center for Advanced Study at Tsinghua University, Beijing. He made distinguished contributions to soft matter physics and biophysics., e.g. the Ouyang-Helfrich shape equation for vesicles of spontaneous curvature, the theory of vesicle-to-tube shape transition of bipeptide aggregates, and the new theory of icosahedron shape of virus capsid and nano-aggregates, the elastic model of double-strand DNA which has been acknowledged as one of the most important early theoretical works on DNA. His honours include: Asia Achievement Prize(1993), Overseas Chinese Physical Society; First Award in Natural Science(1995), CAS, Beijing; Second Award, Chinese National Prize for Natural Sciences(1999); Ho Leung Ho Lee Foundation (HLHL) Prize for Progress in Science and Technology (2004); The National Outstanding Scientific and Technological Workers, by China Association for Science and Technology (2010). He has became an academician of CAS since1997.