Abstract：Objective：To observe the clinical effect of Xuansu Decoction combined with Azithromycin in treating pneumonia in children and its effects on the levels of inflammatory factors. Methods： A total of 106 cases of children with pneumonia were divided into the control group and the observation group according to different treatment methods，with 53 cases in each group. The control group was treated with azithromycin，and the observation group was treated with Xuansu Decoction combined with Azithromycin. Clinical effects and the incidence of adverse reactions were compared between the two groups. Traditional Chinese medicine(TCM) syndrome scores， and the levels of C- reactive protein(CRP)， tumor necrosis factor- α(TNF- α)，and interleukin- 6(IL- 6) in the two groups before and after treatment were compared. Results： The total effective rate was 92.5% in the observation group， higher than that of 84.9% in the control group(P＜0.05). Before treatment， there was no significant difference being found in the comparison of scores of fever，cough，expectoration and wheezing of TCM syndromes between the two groups(P＞0.05). After treatment， scores of fever， cough， expectoration and wheezing of TCM syndromes in the two groups were decreased(P＜0.05)， and the scores in the observation group were lower than those in the control group(P＜0.05). Before treatment，there was no significant difference being found in the comparison of levels of CRP， TNF- α， and IL- 6 between the two groups(P＞0.05). After treatment，levels of CRP，TNF-α，and IL-6 in the two groups were decreased(P＜0.05)，and the levels in the observation group were lower than those in the control group(P＜0.05). Conclusion：The therapy of Xuansu Decoction combined with Azithromycin has a good curative effect in treating pneumonia in children，which can relieve the symptoms of children more quickly，with low adverse reaction rates and high treatment safety.