Abstract： Objective： To observe the clinical effect of Bailing Capsules combined with Candesartan Cilexetil for diabetic nephropathy (DN). Methods：A total of 184 cases of DN patients were divided into the control group and the observation group according to the random number table method，with 92 cases in each group. The control group was given the oral administration of Candesartan Cilexetil Tablets，and the observation group was additionally given the oral administration of Bailing Capsules based on the treatment of the control group. Both groups were treated for eight weeks. The traditional Chinese medicine (TCM) syndrome scores，and the levels of blood glucose，kidney function，and chitinase 3-like protein 1 (CHI3L1)， laminin (LN)， and type Ⅳ collagen ( Ⅳ- C) in serum before and after treatment， as well as the clinical effects in the two groups were compared. Results：The total effective rate was 92.39% in the observation group and 81.52% in the control group，the difference being significant (P＜0.05). After treatment，TCM syndrome scores in the two groups were decreased when compared with those before treatment (P＜ 0.05)， and TCM syndrome score in the observation group was lower than that in the control group (P＜ 0.05). After treatment， the levels of fasting blood glucose， glycated glycoprotein， serum creatinine， blood urea nitrogen，24-hour urinary protein quantification，and urinary albumin excretion rate in the two groups were decreased when compared with those before treatment (P＜0.05)，and the above indexes in the observation group were lower than those in the control group (P＜0.05). After treatment，the levels of CHI3L1， LN and Ⅳ- C in serum in the two groups were decreased when compared with those before treatment (P＜0.05)，and the above indexes in the observation group were lower than those in the control group (P＜0.05). Conclusion： Bailing Capsules combined with Candesartan Cilexetil has a significant curative effect in the treatment of DN， which can effectively control blood glucose， improve kidney function，reduce TCM syndrome scores and serum fibrosis indexes，and effectively delay the progression of renal fibrosis.