This article summarizes the progress of treating diabetic nephropathy (DN) by traditional Chinese medicine in details from the disease name, the disease mechanism to the clinical and experimental research in the recent 10 years.The results of clinical research show that cured by Chinese medicine, DN patients' urine albumen can be decreased obviously. Chinese medicine can also improve the renal function, and prevent or delay the progress of renal failure , Experimental research shows that the mechanism of curing DN by traditional Chinese medicine is in many ways including inhibiting the production of glycation end products, restraining the activity of aldose deoxidization enzyme, adjusting the abnormity of renal hemodynamics, controlling the deposition of extracelluar matix, regulating the genetic expression of cell gene.