Abstract： Objective： To observe the improvement effect of Qihuang Juyu Decoction on lower extremity arteriosclerosis obliterans (LASO) in patients with type 2 diabetes mellitus (T2DM). Methods：A total of 100 cases of patients with T2DM complicated with LASO were selected as research objects and divided into the observation group and the control group by systematic randomization method ， with 50 cases in each group. The control group was treated with routine western medicine，and the observation group was treated with Qihuang Juyu Decoction base on the treatment of the control group. The clinical effects in the two groups were compared. Before and after treatment， changes of common femoral artery， Ankle Brachial Index (ABI)， blood glucose [fasting blood glucose (FBG)， postprandial two- hour blood glucose (P2hBG)] and limb circulation scores in the two groups were compared. Results： After treatment，the total effective rate was 92.00% in the observation group，higher than that of 78.00% in the control group (P＜0.05). Before treatment， there was no significant difference being found in the comparison of the grading of common femoral artery between the two groups (P＞0.05). After treatment， the grading of common femoral artery in the two groups was improved (P＜0.05)，and the grading in the observation 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 ABI grading between the two groups (P＞0.05). After treatment， ABI grading in the two groups was improved (P＜0.05)， and the grading in the observation 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 the levels of FBG and P2hBG between the two groups (P＞ 0.05). After treatment，the levels of FBG and P2hBG in the two groups were decreased (P＜0.05)，and the levels in the observation group were lower than those in the control group (P＜0.05). Before treatment， there was no significant difference being found in the comparison of the scores of skin temperature，color and pain limb circulation between the two groups (P＞0.05). After treatment， the scores of skin temperature，color and pain limb circulation in the two groups were increased (P＜0.05)，and the scores in the observation group were higher than those in the control group (P＜0.05). Conclusion： Qihuang Juyu Decoction has a good curative effect in the treatment of patients with T2DM complicated with LASO. It can improve the condition of common femoral artery and blood circulation of lower limbs， and help stabilize blood glucose.