Objective To explore the efficacy of Yangyin Huoxue decoction combined with western medicine on diabetic nephropathy（DN）. Methods A total of 120 patients with DN of Yin deficiency and blood stasis who were treated in our hospital from January 2018 to December 2019 were selected as the test subjects, and they were divided into control group and observation group according to the random number table method, with 60 cases in each group. Patients in observation group were given Yangyin Huoxue decoction combined with western medicine, and patients in control group were treated with western medicine. The efficacy, TCM syndromes scores and serum biochemical indicators[fasting blood glucose（FBG）, postprandial 2h blood glucose（P2hBG）, serum creatinine（SCr）, blood urea nitrogen（BUN）] were compared between the two groups before treatment and after 12 weeks of treatment. Results After 12 weeks of treatment, the total effective rate of treatment in observation group was higher than that in control group（P<0.05）. The TCM syndromes scores in the two groups were decreased compared with those before treatment, and the scores in observation group were lower than those in control group（all P<0.05）. The FBG, P2hBG, SCr and BUN in the two groups were decreased compared with those before treatment, and the indexes in observation group were lower than those in control group（all P<0.05）. Conclusion Yangyin Huoxue decoction combined with western medicine has a significant efficacy on patients with DN of Yin deficiency and blood stasis, and it can relieve the symptoms, help to stabilize the blood glucose and improve the renal function.