Abstract： Objective： To observe the clinical effect of the therapy of Jili Liangdi tang combined with insulin on type 2 diabetes mellitus(T2DM) and its effect on glucose and lipid metabolism and islet cell function. Methods：A total of 120 patients with T2DM were randomly divided into the treatment group and the control group， with 60 cases in each group. The control group was treated with insulin， and the treatment group was treated with Jili Liangdi tang combined with insulin. Both groups were treated for one month. The clinical effects and implications in the two groups were observed and compared. Before and after treatment， the changes of indexes of glucose and lipid metabolism， including glycosylated hemoglobin (HbA1c)， fasting blood glucose(FBG)， triglyceride(TG) and low- density lipoprotein cholesterol(LDL- C)， and islet cell function， including fasting insulin(FINS)， insulin activity index(IAI)， homeostasis model assessment for insulin resistance(HOMA- IR) and homeostasis model assessment for β- cell function (HOMA-β)，in the two groups were observed and compared. Results：The total effective rate was 96.67% in the treatment group and 85.00% in the control group，the difference being significant(P＜0.05). Before treatment，there was no significant difference being found in the comparisons of levels of HbA1c，FBG， TG and LDL- C between the two groups(P＞0.05)；after treatment，the levels of HbA1c，FBG，TG and LDL-C in the two groups were decreased when compared with those before treatment(P＜0.05)，and the above three levels in the treatment group were lower than those in the control group(P＜0.05). Before treatment， there was no significant difference being found in the comparisons of levels of FINS， IAI， HOMA-IR and HOMA-β between the two groups(P＞0.05). After treatment，the levels of FINS，IAI and HOMA-β were increased when compared with those before treatment(P＜0.05)，and the levels of HOMAIR were decreased(P＜0.05)；the levels of FINS，IAI and HOMA-β in the treatment group were higher than those in the control group(P＜0.05)，and there was no significant difference being found in the comparison of level of HOMA-IR between the two groups(P＞0.05). The incidence of complications was 3.33% in the treatment group and 8.33% in the control group， there being no significance in the difference(P＞0.05). Conclusion： The therapy of Jili Liangdi tang combined with insulin has a good curative effect on patients with T2DM， which can improve the blood glucose， regulate the levels of blood lipid， and promote the recovery of islet cell function，which is safe and reliable.