Objective：To investigate the effect of“Shugan Quyu Decoction”for knee osteoarthritis cartilage histomorphology in early stage. Methods: 18 adult Japanese white rabbits with body weight ranging from 25 to 30 kg were divided into: the normal group, the control group, the treatment group. The animal models of early stage knee osteoarthritis were made by ligating femoral vein in the control group and the treatment group and then raised alone cage. 8 weeks after the operation, rabbits were administrated with physiologic saline infused into the stomach in the normal group, the control group for 4 weeks, the treatment group with Shugan Quyu Decoction (XiShu Decoction), and cartilage cell rank, cartilage morphous, cartilage cell nucleus, cartilage cell-substance, cartilage thickness were examined. Results: The cartilage thickness had significant difference in the normal group and the control group, the control group and the treatment group (P<0.01); Then the cartilage thickness had no significant difference in the normal group and the treatment group（P>0.05). Conclusion: Herbal medicine as prescription principle“Shuganyu, Huaxiyu”can affect obviously cartilage thickness, improve cartilage matrix, promote cartilage cell generation, restore injured cartilage.