Diabetic nephropathy is one of the major microangiopathy in diabetic patients.It is also one of the important causes of end-stage renal disease.There are many theories in the diagnosis and treatment of diabetic nephropathy by traditional Chinese medicine.The pathogenesis of diabetic nephropathy is explained from different angles.Most of the doctors believe that deficiency of qi and yin is the main cause and pathogenesis.A new western medicine for diabetic nephropathy has a certain protective effect on the kidney.This paper reviewed the progress of diagnosis and treatment of diabetic nephropathy from two aspects.