Abstract：Objective：To observe the clinical effect of Tenghuang Jiangu capsules for knee osteoarthritis (KOA). Methods：A total of 90 cases of patients with KOA were selected and divided into the observation group and the control group according to the random number table method，with 45 cases in each group. The control group was treated with Fenbid，and the observation group was treated with Tenghuang Jiangu capsules. Both groups were treated for two months. The clinical effects and the incidence of adverse reactions in the two groups were compared； the scores of Western Ontario and McMaster University Osteoarthritis Index(WOMAC) and Visual Analogue Scale of pain(VAS)， as well as the levels of serum inflammatory factors including interleukin- 17(IL- 17) and insulin- like growth factor- 1(IGF- 1) before and after treatment in the two groups were compared. Results：The total clinical effective rate was 93.33% in the observation group and 77.78% in the control group， the difference being significant(P＜0.05). After treatment，the scores of VAS and WOMAC in the two groups were decreased when compared with those before treatment(P＜0.05)， and the two scores in the observation group were lower than those in the control group(P＜0.05). After treatment，the levels of IL-17 and IGF-1 in the two groups were decreased when compared with those before treatment(P＜0.05)， and the levels of IL- 17 and IGF- 1 in the observation group were lower than those in the control group(P＜0.05). The incidence of adverse reactions was 4.44% in the observation group and 17.78% in the control group，the difference being significant(P＜ 0.05). Conclusion：Tenghuang Jiangu capsules for KOA has a significant curative effect，which can relieve pain and improve knee joint unction，with low incidence of adverse reactions.