To observe the changes of blood glucose, blood lipid and glycosylated hemoglobin before and after the treatment by clearing liver descending turbidity and resolving dampness method in type 2 diabetes and hyperlipidemia, so as to explore Chinese medicinals’ mechanism in treating the disease. Methods:Total 120 patients were randomly divided into two groups. On the basis of western medicine to control blood sugar, the treatment group of 60 cases received modified Major Bupleurum Decoction (Composed of Chinese Thorowax Root, Baical Skullcap Root, wine Rhubarb, Immature Orange Fruit, Gentiana Scabra Bge, raw Hawthorn Fruit, Oriental Waterplantain Rhizome, Virgate Wormwood Herb, Pinellia Tuber, Salvia Root etc. ), 500 mg each time, three times a day. The control group of 60 patients received metformin treatment, also 500 mg each time, three times a day. The treatment of both groups had 12 weeks for one course of treatment, and the observation continued one course of treatment. Results: The fasting blood glucose (FBG), postprandial 2 hours blood glucose (P2BG), glycosylated hemoglobin (HBA1C), serum total cholesterol (Tc), low density lipoprotein cholesterol (LDL-C) of treatment group after treatment were significantly decreased, compared with before treatment (P<0.01). And there were significant differences in the control group (P<0.05, P<0.01). Conclusion:Clearing liver descending turbidity and resolving dampness method has clear regulating effect in in type 2 diabetes and hyperlipidemia patients.