Abstract： Objective： To observe the clinical effect of Xiaoyan Zhitong ointment for insulin subcutaneous induration in patients with diabetes. Methods：A total of 40 patients with type 2 diabetes mellitus who had subcutaneous induration after insulin injection were selected as the study subjects and divided into the experiment group and the control group according to the random number table method，with 20 cases in each group. Both groups were treated with routine insulin injection. The control group was additionally treated with wet- hot application of 50% magnesium sulfate solution， and the experiment group was additionally treated with Xiaoyan Zhitong ointment. The levels of blood glucose， including fasting blood glucose (FBG)， postprandial 2 h blood glucose(P2hBG) and glycosylated hemoglobin(HbA1c)， levels of blood lipids， including total cholesterol(TC)，triglyceride(TG) and low- density lipoprotein(LDL)，and levels of serum inflammatory factors，including Creactive protein(CRP) and interleukin- 6(IL- 6)， before and after treatment and the clinical effects were compared between the two groups. Results：The clinical effect in the experiment group was better than that in the control group(P＜0.05). Before treatment，there was no significant difference being found in the comparison of levels of FBG，P2hBG，HbA1c，TC，TG and LDL between the two groups(P＞0.05)；after treatment，the above indexes in the two groups did not change significantly (P＞0.05). Before treatment， there was no significant difference being found in the comparison of levels of CRP and IL- 6 between the two groups(P＞0.05)； after treatment， the above levels in the two groups were lower than those before treatment，and the above levels in the experiment group were lower than those in the control group(P＜0.05). Conclusion： The therapy of Xiaoyan Zhitong ointment for subcutaneous induration caused by insulin injection can improve the degree of lesion of subcutaneous sclerosis in the short term and alleviate the inflammatory responses， with no significant effect on levels of blood glucose and blood lipid.