Abstract： Objective： To observe the clinical effect of modified Chaihu Guizhi Decoction， Danggui Shaoyao Powder and Guizhi Fuling Pills on diabetic peripheral neuropathy (DPN) of phlegm-stasis blocking collaterals type. Methods： A total of 60 cases of patients with DPN of phlegm-stasis blocking collaterals type were included in this study and divided into the treatment group and the control group according to random number table method， with 30 patients in each group. The control group was treated with conventional western medicine， and the treatment group was supplemented with modified Chaihu Guizhi Decoction，Danggui Shaoyao Powder and Guizhi Fuling Pills. Both groups underwent one treatment course lasting 30 days. The changes in traditional Chinese medicine (TCM) syndrome scores， motor nerve conduction velocity (MNCV) of median nerve and common peroneal nerve， sensory nerve conduction velocity (SNCV) and vibration perception thresholds before and after treatment as well as the clinical effects in the two groups were observed. Results： After treatment， the total effective rate was 93.33% in the treatment group and 73.00% in the control group， and the difference between the two groups was significant (P＜0.05). After treatment，the TCM syndrome scores in the two groups were lower than those before treatment， and the score in the treatment group was lower than that in the control group， differences being significant (P＜0.05). After treatment，the perception thresholds in the two groups were decreased when compared with those before treatment， and the perception threshold in the treatment group was lower than that in the control group， differences being significant (P＜0.05). After treatment， MNCV and SNCV of median nerve and common peroneal nerve in the two groups were higher than those before treatment， and the above indexes in the treatment group were higher than those in the control group，differences being significant (P＜0.05). In the course of treatment，no obvious adverse reaction was observed in both groups. Conclusion： The combination of Chaihu Guizhi Decoction， Danggui Shaoyao Powder and Guizhi Fuling Pills treatment DPN of phlegm-stasis blocking collateral type can increase the clinical effect，alleviate paresthesia，and improve nerve conduction velocity and TCM syndrome.