Abstract： Objective： To observe the efficacy of surrounding acupuncture combined with Analgesic Formula fumigation in treating knee osteoarthritis. Methods： A total of 70 patients with knee osteoarthritis treated at Quzhou Hospital of Traditional Chinese Medicine from January 2023 to May 2024 were divided into the control group and the observation group using the random number table method，with 35 cases each. The control group received oral Celecoxib Capsules，while the observation group received additional surrounding acupuncture combined with Analgesic Formula fumigation. Clinical efficacy and incidence of adverse reactions were compared between the two groups. Changes in Lequesne Dysfunction Index， Western Ontario and McMaster Universities Osteoarthritis Index（WOMAC）， Knee Society Score（KSS）， knee extension moment， knee adduction moment， 6-minute walking distance，knee range of motion（ROM），interleukin-1β（IL-1β），interleukin-6（IL-6），and β-collagen special sequence levels（β-CTX）were evaluated before and after treatment. Results：The total effective rate was 88.57%（31/35）in the observation group and 65.71%（23/35）in the control group，the difference being significant（P＜0.05）. After treatment，both groups showed decreased Lequesne and WOMAC scores（P＜0.05）and increased KSS scores（P＜0.05）；the Lequesne and WOMAC scores in the observation group were lower than those in the control group（P＜0.05），and KSS score was higher（P＜ 0.05）. Knee extension moment， knee adduction moment， 6-minute walking distance and ROM improved in both groups（P＜0.05），with greater improvement in the observation group（P＜0.05）. After treatment，the IL-1β，IL- 6 and β-CTX levels decreased in both groups（P＜0.05）， showing greater reduction in the observation group（P＜ 0.05）. The incidence of adverse reactions was 8.57%（3/35）in the observation group and 2.86%（1/35）in the control group，there being no significance in the difference（P＞0.05）. Conclusion：Surrounding acupuncture combined with Analgesic Formula fumigation demonstrates good efficacy for knee osteoarthritis， improving joint pain， ROM and reducing inflammation reactions.