This paper analyzes the TCM etiology and pathogenesis of lung nodules by Chinese medical master Zhang Zhen and discusses the treatment experience and clinical methods of Shutiao Xiaohe Decoction from the perspective of mind and body, and expounds the cognition of psychological factors in modern medicine. Through the empirical study of Shutiao Xiaohe Decoction, it is found that the main pathogenesis of lung nodules is liver failure and constipation, stagnation of Qi and interjunction of phlegm and blood stasis. Therefore, the prevention and treatment principles of regulating Qi, soothing liver and regulating Qi, expelling phlegm and dispersing knot can effectively improve the internal environment of nodule breeding, and provide a basis for sorting out and inheriting Zhang Zhen‘s academic thoughts.