Abstract： Objective： To observe the clinical effect of modified Xiakucao Decoction combined with Haizao Yuhu Decoction for patients with benign thyroid nodules complicated with thyroid hormone abnormalities. Methods：A total of 80 cases of patients with benign thyroid nodules were divided into the observation group and the control group according to the random number table method，with 40 cases in each group. The control group was treated with Levothyroxine Tablets for hypothyroidism，and Thiamazole Tablets for hyperthyroidism； the observation group was additionally treated with modified Xiakucao Decoction combined with Haizao Yuhu Decoction based on the treatment of the control group. The clinical effects，traditional Chinese medicine (TCM) syndrome scores，thyroid hormone [free thyroxine(FT4)，free triiodothyronine (FT3) and thyroid stimulating hormone (TSH)]， and recurrence rates were observed and compared between the two groups. Results：The total effective rate was 92.50% in the observation group and 70.00% in the control group，the difference being significant (P＜0.05). Before treatment，there was no significant difference being found in the comparison of TCM syndrome scores including neck swelling， chest rib pain， preference for sighing， pharyngeal obstruction feeling， pharyngeal phlegm， and chest distress between the two groups (P＞0.05). After treatment，the above TCM syndrome scores in the two groups were decreased when compared with those before treatment (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 TSH， FT3 and FT4 in serum between the two groups (P＞0.05). After treatment，the TSH levels in the two groups were increased when compared with those before treatment (P＜0.05)， and levels of FT3 and FT4 were decreased when compared with those before treatment (P＜0.05)；the TSH level in the observation group was higher than that in the control group (P＜0.05)，and the levels of FT3 and FT4 were lower than those in the control group (P ＜ 0.05). After three- month follow- up ， the recurrence rate was 5.41% in the observation group and 28.57% in the control group， the difference being significant (P＜0.05). Conclusion： Modified Xiakucao Decoction combined with Haizao Yuhu Decoction has a significant curative effect in treating benign thyroid nodules， and can effectively relieve clinical symptoms，improve thyroid function，and reduce recurrence rates.