Abstract：Objective：To observe the clinical effect of Yiqi Tongluo tang for diabetic peripheral neuropathy and its effect on inflammatory factors and oxidative stress reactions. Methods： A total of 80 cases of patients with diabetic peripheral neuropathy were selected as the study subjects and divided into the control group and the observation group according to their treatment methods，with 40 cases in each group. The control group given regular treatment of western medicine，and the observation group was additionally treated with Yiqi Tongluo tang based on the treatment of the control group. The clinical effects in the two groups were compared. Before and after treatment，the Chinese medicine syndrome scores，the nerve conduction velocity and the levels of vascular cell adhesion cell molecule- 1(VCAM- 1)，fibroblast growth factor- 2(FGF- 2)， tumor necrosis factor- α(TNF- α)，interleukin- 6(IL- 6)，superoxide dismutase(SOD)，γ- glutamyl transferase(GGT)，serum ferritin(SF)，total antioxidant capacity(T- AOC) and malondialdehyde(MDA) in the two groups were compared. Results：The total effective rate was 90.00% in the observation group， higher than that of 77.50% in the control group(P＜0.05). After treatment，Chinese medicine syndrome scores and levels of VCAM-1，FGF-2，TNF-α，IL-6，GGT，SFC and MDA in the two groups were decreased when compared with those before treatment(P＜0.05)，and levels of sensory nerve conduction velocity(SNCV) and motor nerve conduction velocity(MNCV) in median nerve and nervus peroneus communis and T- AOC， SOD were increased(P＜0.05)；Chinese medicine syndrome scores and levels of VCAM-1，FGF-2，TNF-α，IL-6，GGT， SF and MDA in the observation group were lower than those in the control group(P＜0.05)，and levels of SNCV and MNCV in median nerve and nervus peroneus communis and T- AOC，SOD were higher(P＜0.05). Conclusion：Yiqi Tongluo tang for diabetic peripheral neuropathy can effectively improve clinical effect and promote recovery of neurological function，whose mechanism may be related to reducing oxidative stress and levels of inflammatory factors.