The theory of “yang transforming qi while yin constituting form” plays an important guiding role in the occurrence， development of the disease and have a positive effect in the hepatic sclerosis process of diagnosis and treatment. When yang qi is insufficient， the liver function decline. It generates too much material things. Based on the theory of “yang transforming qi while yin constituting form”， the causes， the etiology， pathogenesis， symptoms of the hepatic sclerosis were discussed， and thus the method of warm yang to transform qi is an important principle in treatment of liver cirrhosis were puts forward， and should be treated throughout the liver cirrhosis.