To observe the clinical effect of Huoxue Jiangzhi Baogan tang combined with western medicine for type 2 diabetes mellitus(T2DM)complicated with nonalcoholic fatty liver disease(NAFLD)，and its effect on the liver function and fatty liver indexes.Methods：A total of 102 cases of patients with T2DM complicated with NAFLD in our hospital were randomly divided into two groups，51 cases in each group.The control group was treated with routine western medicine，and the treatment group was additionally treated with Huoxue Jiangzhi Baogan tang based on the treatment of the control group.Both groups were treated for eight weeks.The contents of gamma-glutamyl transferase(GGT)，alanine aminotransferase(ALT)， alkaline phosphatase(ALP)， aspartate aminotransferase(AST)， triglyceride(TG)， fasting blood glucose(FBG)，postprandial 2h blood glucose(P2hBG)and hemoglobin A1c(HbA1c)in serum before and after treatment in the two groups were detected；the body mass index(BMI)and waist circumference(WC)were measured；the fatty liver indexes(FLI)were calculated.Results：After treatment，the total effective rate was 84.31%in the treatment group and 68.63%in the control group，the difference being significant(P ＜ 0.05).After treatment，the levels of HbA1c，FBG and P2hBG in the two groups were significantly decreased when compared with those before treatment(P ＜ 0.05)，and the above levels in the treatment group were lower than those in the control group(P ＜ 0.05).After treatment，the contents of ALP，GGT，ALT and AST in serum in the two groups were significantly decreased when compared with those before treatment(P ＜ 0.05)，and the above indexes in the treatment group were lower than those in the control group(P ＜ 0.05).After treatment，the values of TG，BMI，WC and FLI in the two groups were significantly decreased when compared with those before treatment(P ＜ 0.05)，and the values of TG and FLI in the treatment group were significantly lower than those in the control group(P＜0.05).Conclusion：The therapy of Huoxue Jiangzhi Baogan tang combined with routine western medicine in treating patients with T2DM complicated with NAFLD can significantly improve the liver function，regulate blood glucose content and reduce fatty liver indexes，whose curative effect is superior to that of simple western medicine.