Chaihu Shugan Powder was commonly used for the clinical treatment of depression. In recent years， researchers at home and abroad conducted lots of studies on treatment of depression by applying Chaihu Shugan powder with modern scientific methods. Through searching domestic and oversea lectures which studied on treatment of depression by applying Chaihu Shugan powder published in recent years， this article summarized relative clinical and fundamental experimental studies and indicated that that Chaihu Shugan powder had remarkable antidepressant effect. The mechanism may involve regulating monoamine neurotransmitter， protecting hippocampal neurons and adjusting HPA axis. This article could provide reference for a further study on pathogenesis of depression， new drug development and improvement of depression treatment.