to observe therapeutic effects of Hushen Yuxiao Decoction for early stage diabetic nephropathy (DN) by randomized control study.Methods:70 early DN patients were randomly grouped to treated group (38 cases) and control group (32 cases). In addition to basic hypoglycemic medication, the control group took losartan potassium and the treated group administered Hushen Yuxiao Decoction. Parameters investigated included FBG, 2hPG, TC, TG, HDL-C, LDL-C and UAE before and after sixty day-treatment.Results:FBG, 2hPG and UAE levels of both groups significantly dropped (P<0.01) after treatment, and UAE level of the treated group was markedly lower compared with the control group (P<0.05). After treatment,TC, TG, LDL-C levels were lower in the treated group and no significant reduction was seen for the control group, thus treated group significantly cut down these three levels in comparison with the control group (P<0.05).Conclusion:Early DN responds well to Hugan Yuxiao Decoction. The decoction is helpful to bring down microalubumin and blood fat.