Abstract： Objective： To observe the clinical effect of Modified Shenqi Dihuang Decoction combined with western medicine for stage Ⅳ diabetic nephropathy (DN) of qi- yin deficiency and blood stasis syndrome. Methods： A total of 62 cases of patients with DN in stage Ⅳ and the syndrome of qi- yin deficiency and blood stasis were divided into the treatment group and the control group according to the random number table method，with 31 cases in each group. Both groups were given basic treatment such as hypoglycemic medicine， the control group was additionally treated with western medicine including Benazepril Hydrochloride Tablets， and Losartan Potassium Hydrochlorothiazide Tablets； the treatment group was additionally treated with Modified Shenqi Dihuang Decoction. Both groups were treated for 2 months. The levels of 24-hour urine protein，serum high-sensitivity C-reactive protein (hs-CRP)，blood glucose including fasting blood glucose (FBG) and postprandial 2-hour blood glucose (P2hBG)，and oxidative stress indicators including malondialdehyde (MDA) and superoxide dismutase (SOD) before and after treatment，as well as clinical effects，were compared between the two groups. Results：After treatment， the total effective rate of clinical effect was 93.55% in the treatment group，higher than that of 70.97% in the control group ， the difference being significant (P ＜ 0.05). The levels of 24-hour urine protein and hs- CRP in serum in the two groups were decreased when compared with those before treatment (P＜ 0.05)，and the two levels in the treatment group were lower than those in the control group (P＜0.05). The levels of FBG and P2hBG in the two groups were decreased when compared with those before treatment (P＜0.05)，but there were no significant difference between the two groups (P＞0.05). The levels of MDA in serum in the two groups were decreased when compared with those before treatment (P＜0.05)，and the levels of SOD in serum were increased when compared with those before treatment (P＜0.05)；the level of MDA in serum in the treatment group was lower than that in the control group (P＜0.05)，and the level of SOD in serum in the treatment group was higher than that in the control group (P＜0.05). Conclusion： Modified Shenqi Dihuang Decoction combined with western medicine for patients with DN in stage Ⅳ and the syndrome of qi- yin deficiency and blood stasis can improve clinical effects， reduce kidney damage effectively，relieve inflammatory responses in the body，control the level of blood glucose，and regulate oxidative defense function.