| To explore the clinical effect of Shenqi Jiangtang Capsule Combined with Metformin on type 2 diabetes mellitus (T2DM) and its effect on blood lipids. Methods: 62 patients with T2DM were randomly divided into observation group and control group with 31 cases. The control group was treated with Metformin , and the observation group was treated with Shenqi Jiangtang Capsule on the basis of the control group. They were treated for 2 months. The clinical efficacy of the two groups after treatment, the changes of blood glucose and blood lipid before and after treatment, and the adverse reactions during treatment were compared. Results: After treatment, the total effective rate in the observation group was was higher than the control group (P＜0.05); after treatment, FPG, 2hPG and HbA1c in the two groups decreased were lower than before, and the observation group were lower than the control group (P＜0.05); After treatment, TC, TG and LDL-C decreased and HDL-C increased in the two groups. TC, TG and LDL-C in the observation group were lower than the control group (P＜0.05), and HDL-C was higher than the control group (P＜0.05),the difference was not statistically significant(P＞0.05). Conclusion: Shenqi Jiangtang Capsule Combined with Metformin in the treatment of T2DM can improve the clinical efficacy, reduce blood glucose, regulate blood lipid and do not increase adverse reactions. It is worthy of popularization.