Currently, there is a mismatch between the limited treatments of western medicine and the rising incidence rate of nonalcoholic fatty liver disease（NAFLD）. Traditional Chinese Medicine（TCM） is now playing an important role in the clinical treatment of liver diseases including NAFLD. In this article, we review the main advantages of TCM in treating NAFLD as follows：1）TCM is widespread used and shown the efficacy in clinic；2）The multi-path effect of TCM corresponds to the complicated pathogenesis of diseases；3）TCM has remarkable effect in inhibition of inflammation as well as in reducing enzymes and protecting liver. We also put forward suggestion and prospects in both clinical and basic research on regulating intestinal flora, anti-fibrosis and the compound prescription of TCM.