To investigate the effects and safety of Yiqi Huoxue Tongluo method (decoction serving as replenishing qi, activating blood circulation and collaterals) combined with Shenqi compound granule in the treatment of diabetic peripheral neuropathy. Methods: Select 60 cases of patients with diabetic peripheral neuropathy admitted to our hospital from January 2014 to January 2016 and randomly divided them into 2 groups with 30 cases in each. The control group was given conventional western therapy( including glucose control and lipid regulation) in combination with Yiqi Huoxue Tongluo decoction: 1 dose per day, for 8 continuous weeks. The observation group received Shenqi compound granules treatment based on the control group. Comparison of TCM syndrome, curative effect and incidence of adverse reaction was made between the two groups. Results: TCM symptoms of the observation group was significantly lower than that of the control group (P<0.05); the observation group was obviously higher than the control group in terms of the total effective rate (21 cases, 70% vs. 16 cases, 53.3%). The differences were statistically significant (P<0.05). There was no statistical significance (P>0.05) regarding the incidence of adverse reaction by comparing the wo groups. Conclusion: Yiqi Huoxue Tongluo method combined with Shenqi compound granule in the treatment of diabetic peripheral neuropathy proves to be favorable and safe in terms of cuative effect and relief of clinical symtoms with low or no adverse reaction.