Objective To investigate the clinical efficacy of Sanqi Decoction in the treatment of early diabetic nephropathy (Diabetic, Nephropathy, DN) and its influence on the metabolism of lipid and glucose and renal function. Methods 96 patients with DN in our hospital were randomly divided into two groups. 48 cases in control group were treated with Enalapril, and 48 cases in observation group were treated with Sanqi decoction. Results The total effective rate of the observation group was 95.65%, which was significantly higher than that of the control group (81.25%) (P<0.05). Lipid, glucose metabolism and renal function improvement were better than those in the control group (P<0.05). Conclusion Sanqi Decoction is effective in the treatment of early DN, it can effectively improve the metabolism of lipid and sugar, reduce the excretion rate of urinary albumin, and have the effect of renal protection.