Abstract：Objective：To observe the clinical effect of Xiaoying Sanjie tang on the treatment of thyroid nodules(TN) and its effect on serum thyroid peroxidase antibody(TPOAb) and thyroglobulin antibody(TGAb) in patients. Methods： A total of 106 patients with TN were divided into the control group and the treatment group by random number table method，53 cases in each group. The control group was treated with levothyroxine tablets and the treatment group was additionally treated with Xiaoying Sanjie tang based on the treatment of the control group. The clinical effect after treatment， Chinese medicine syndrome scores，thyroid antibodies and average diameter of nodules before and after treatment as well as adverse reactions were compared between the two groups. Results：The total effective rate was 88.68% in the treatment group，higher than that of 71.70% in the control group(P＜0.05). Compared with the same group before treatment，Chinese medicine syndrome scores， levels of serum TPOAb and TGAb in both groups were decreased after treatment(P＜0.05)， and the average diameter of nodules were decreased as well(P＜0.05)； Compared with the control group after treatment， the Chinese medicine syndrome score，levels of serum TPOAb and TGAb in the treatment group were lower(P＜0.05)，and the average diameter of nodules was smaller(P＜0.05). The incidence of adverse reactions in the treatment group was 5.66%，lower than that of 22.64% in the control group(P＜0.05). Conclusion：Xiaoying Sanjie tang has a significant effect on treating TN，which can effectively relieve clinical symptoms，inhibit nodule progression，reduce the level of thyroid antibodies，and reduce the adverse reactions caused by western medicine treatment to a certain extent.