Abstract We present a three-dimensional (3D) extinction analysis in the region towards the supernova remnant (SNR) S147 (G180.0–1.7) using multiband photometric data from the Xuyi Schmidt Telescope Photometric Survey of the Galactic Anticentre (XSTPS-GAC), 2MASS and WISE. We isolate a previously unrecognized dust structure likely to be associated with SNR S147. The structure, which we term as ‘S147 dust cloud’, is estimated to have a distance d = 1.22 ± 0.21 kpc, consistent with the conjecture that S147 is associated with pulsar PSR J0538 + 2817. The cloud includes several dense clumps of relatively high extinction that locate on the radio shell of S147 and coincide spatially with the CO and gamma-ray emission features. We conclude that the usage of CO measurements to trace the SNR associated MCs is unavoidably limited by the detection threshold, dust depletion and the difficulty of distance estimates in the outer Galaxy. 3D dust extinction mapping may provide a better way to identify and study SNR–MC interactions.