Abstract： Objective： To observe the clinical effect of Yishen Yangyin Huoxue Tongluo prescription on diabetic nephropathy. Methods：A total of 112 cases of patients with diabetic nephropathy who met the inclusion criteria were treated as clinical research objects and divided into two groups according to the random number table method，with 56 cases in each group. Both groups were given basic treatment； the control group was additionally treated with benazepril hydrochloride tablets，and the study group group was additionally treated with Yishen Yangyin Huoxue Tongluo prescription based on the treatment of the control group. After 12-week treatment，clinical effects were observed in the two groups；levels of urinary albumin excretion rate(UAER)， urinary β2- microglobulin(β2- MG)， vascular endothelial growth factor(VEGF) and bone morphogenic protein-7(BMP-7) were observed and compared between the two groups. Results：The total clinical effective rate was 92.86% in the study group，higher than that of 75.00% in the control group，the difference being significant(P＜ 0.05). After treatment，levels of UAER，β2- MG and VEGF in the two groups were decreased when compared with those before treatment，and the levels in the study group were lower than those in the control group，differences being significant (P＜0.05). Levels of BMP-7 in the two groups were increased when compared with those before treatment，and the level in the study group was higher than that in the control group，differences being significant(P＜0.05). Conclusion：Yishen Yangyin Huoxue Tongluo prescription has a good clinical effect on diabetic nephropathy，which can reduce UAER and β2- MG，and improve the expression of cytokine.