To evaluate the effectiveness of supplementing qi and nourishing yin, promoting blood circulation and removing blood stasis therapy in treating type 2 diabetic nephropathy. Methods:Forty patients of diabetic nephropathy were randomly divided into treatment group and control group in a proportion of 2:1.The treatment group applied supplementing qi and nourishing yin promoting blood circulation and removing blood stasis therapy, using the treatment formula including herbs of astragalus mongholicus, rehmanniae radix, prepared rhubarb, selfheal, panax pseudoginseng, winged euonymus, cornus, fructus Aurantii. Placebo was used in the control group. The treatment lasted for 12 weeks. The indexes of TCM syndrome score, MAU, 24 h urine protein quantitative, glycosylated hemoglobin, hepatic and renal functions, and blood-lipid before and after treatment were observed and analyzed. Results:The TCM syndrome score decreased in treatment group after taking medicine with a decline by weeks. Statistical difference was found after 8 weeks, and the total effective rate was 81.48% at the end of 12 weeks. Compared with pre-treatment and placebo group, urinary protein also decreased after treatment with a significant difference. Conclusion: The therapy of supplementing qi and nourishing yin, promoting blood circulation and removing blood stasis could improve the symptoms of patients with diabetic nephropathy (Ⅲ~Ⅳ) in deficiency of qi and yin combined with blood stasis, and prevent the aggravation of diabetic nephropathy in Ⅲ、Ⅳ period. It could be recommended for TCM clinical use in treating EDN.