Diabetic nephropathy(DN) gradually becomes one of major complications of diabetes mellitus. It has become the most important reason， which can lead to end-stage renal disease (ESRD). Therefore， detecting and diagnosing the disease early， and looking for effective prevention method has become an important subject of current medical workers. This article summarizes the progress of treating diabetic nephropathy(DN) by traditional Chinese medicine from the disease mechanism， treatment applying with the pattern identification， special treatment of herbs in the recent years. The results of clinical research show that after treated with Chinese medicine， DN patients’ urine albumen can be decreased obviously. Chinese medicine can also improve the renal function， prevent or delay the progress of renal failure.