Abstract：Objective：To observe the clinical effect of balance needle combined with Chaihu Shugan powder for occipital neuralgia of liver depression type. Methods：A total of 72 cases of patients with occipital neuralgia of liver depression type were randomly divided into two groups， 36 cases in each group. The observation group was treated with balance needle combined with modified Chaihu Shugan powder，and the control group was treated with carbamazepine tablets. The scores of Visual Analogue Scale(VAS) and clinical symptoms were evaluated. Results：After treatment，34 cases were included in the observation group and 32 cases in the control group. Before and after treatment，there were significant differences being found in the comparisons of scores of pain in VAS and clinical symptoms between the two groups(P＜0.05)；after treatment， the improvement of scores of pain in VAS and clinical symptoms in the observation group was significantly better than that in the control group，differences being significant(P＜0.05). The cured and markedly effective rate of clinical effect was 88.24% in the observation group and 59.38% in the control group， the difference being significant(P＜0.05). Conclusion： Balance needle combined with Chaihu Shugan powder for occipital neuralgia of liver depression type has clear curative effect，and can quickly relieve pain，and consolidate the curative effect，whose effect is better than that of simple carbamazepine tablets.