Abstract: OBJECTIVE To study the therapeutic effect and the possible mechanism of Jinqi Yuquan Formula(JQYQF) in the treatment of diabetic nephropathy of qi and yin deficiency combined with blood stasis type. METHODS 82 DN patients were randomly divided into the treatment group and the control group， 41 cases in each group. Both groups were given the basic treatments such as diet controlling， regular exercising， hypoglycemic and depressurization. On the basis of the basic treatments， the treatment group was also given JQYQF for 12 weeks continuously. Parameters changes of blood glucose， blood lipid spectrum， blood pressure， renal function， urine protein， serum cystatin C (CysC) and podocalyxin (PCX) in both groups were compared before and after treatment. RESULTS Blood glucose， blood lipid and blood pressure in both groups had no significant changes before and after the treatment. The effective rate was 60.97% in the treatment group and 29.26% in the control group， and the difference between the two groups was statistically significant (P<0.01). Albumin excretion rate (UAER)， 24h urine protein quantitative， estimated glomerular filtration rate (eGFR)， CysC and PCX in the treatment group were significantly improved than those of the pre-treatment (P<0.01)， and those of the treatment groups than the control group (P<0.01). CONCLUSIONS Jinqi Yuquan formula can improve the kidney function by protecting podocyte function and reducing urine protein in diabetic nephropathy patients of qi and yin deficiency combined with blood stasis type.