Abstract：Objective：To observe the clinical effect of fire-dragon moxibustion with Wenbi powder on knee osteoarthritis (KOA) of wind-cold and damp-impediment type. Methods：A total of 74 KOA patients of wind-cold and damp-impediment type were randomly divided into the control group and the observation group，with 37 cases in each group. The control group was given cailaixibu capsules and other conventional treatment，and the observation group was additionally given fire-dragon moxibustion with Wenbi powder based on the treatment of the control group. Both groups were treated for three courses， with seven days being one course. The scores of Visual Analogue Scale(VAS)，Western Ontario and McMaster Universities Arthritis Index(WOMAC) and levels of inflammatory factors in serum including tumor necrosis factor- α(TNF- α) and interleukin- 6(IL- 6) before and after treatment were observed， and the treatment safety was compared between the two groups. Results： The total effective rate was 91.89% in the observation group and 72.97% in the control group， the difference being significant(P＜0.05). After treatment，the scores of VAS and WOMAC in both groups were decreased when compared with those before treatment(P＜0.05)，and the above two scores in the study group were lower than those in the control group(P＜0.05). After treatment，the levels of TNF-α and IL-6 in serum in both groups were significantly decreased when compared with those before treatment(P＜0.05)，and the above two levels in the study group were lower than those in the control group(P＜0.05). During the treatment，there was no obvious adverse reaction in both groups，and no symptoms of skin scald and allergy in the study group，indicating great safety. Conclusion：Fire-dragon moxibustion with Wenbi powder can significantly relieve pain，effectively improve joint function and reduce inflammation.