Abstract：Objective：To observe the clinical effect of Huoxue Yangyin tang for early diabetic nephropathy. Methods：A total of 110 cases of patients with early diabetic nephropathy were selected and divided into the control group and the observation group according to the random number table method，55 cases in each group. Both groups were given routine diabetic treatment. Meanwhile，the control group was given the oral administration of enalapril maleate，and the observation group was additionally treated with Huoxue Yangyin tang based on the treatment of the control group. Before and after treatment，the levels of serum uric acid(UA)，serum β2-microglobulin(β2-MG)，serum creatinine(SCr)，blood urea nitrogen (BUN)，urinary albumin excretion rate(UAER) and Chinese medicine syndrome scores in the two groups were compared. The curative effect and adverse reactions were recorded. Results：The total effective rate was 85.45% in the observation group， higher than that of 63.64% in the control group，the difference being significant(P＜0.05). After treatment，the levels of UA， SCr and UAER in the two groups were lower than those before treatment，and the levels of UA，SCr，UAER and β2-MG in the observation group were lower than those in the control group， differences being significant(P＜0.05). After treatment， Chinese medicine syndrome scores in the two groups were decreased when compared with those before treatment，and the score in the observation group was lower than that in the control group，differences being significant(P＜0.05). Conclusion： The application of Huoxue Yangyin tang for patients with early diabetic nephropathy can effectively improve their kidney function and relieve the clinical symptoms with few adverse reactions.