Abstract： Objective： To observe the clinical effect of Naofucong Prescription combined with acupuncture on diabetic encephalopathy. Methods： A total of 88 cases of patients with diabetic encephalopathy were divided into the control group and the treatment group by random number table method，with 44 cases in each group. The control group was treated with conventional western medicine， and the treatment group was treated with Naofucong Prescription combined with acupuncture based on the treatment of the control group. Traditional Chinese medicine (TCM) syndrome scores and Mini-mental State Examination (MMSE) before and after treatment as well as the clinical effects were compared between the two groups. The levels of 2-hour postprandial blood glucose， glycosylated hemoglobin， endothelial progenitor cells， dopamine (DA)， 5-hydroxytryptamine (5-HT)， superoxide dismutase (SOD) and brain metabolic indexes [choline containing compounds (Cho)，creatine (Cr)，N-acetylaspartate complex (NAA)， Cho/Cr， NAA/Cho] before and after treatment were compared between the two groups. Results： After treatment， the total effective rate in the treatment group was 97.73%， which was higher than that of 81.82% in the control group (P＜0.05). After treatment， the levels of glycosylated hemoglobin， 2-hour postprandial blood glucose and Cho，TCM syndrome scores and Cho/Cr in the two groups were decreased when compared with those before treatment (P＜0.05)，and the levels of endothelial progenitor cells，DA， 5-HT， SOD， Cr and NAA， MMSE scores and NAA/Cho were increased (P＜0.05)； the levels of glycosylated hemoglobin，2-hour postprandial blood glucose，Cho，TCM syndrome scores and Cho/Cr in the treatment group were lower than those in the control group (P＜0.05)， and the levels of endothelial progenitor cells，DA，5-HT，SOD，Cr and NAA，MMSE score and NAA/Cho in the treatment group were higher than those in the control group (P＜0.05). Conclusion： Naofucong Prescription combined with acupuncture has a definite curative effect on diabetic encephalopathy， which can regulate the levels of neurotransmitters and blood glucose and improve brain metabolism and cognitive function.