OBJECTIVE:To improve hospital dispensing system and reduce dispensing error. METHODS: The causes of 65 cases of dispensing error occurred in outpatient pharmacy were analyzed by employing total quality management (TQM) method from 5 aspects: human,machine,material,method and environment. RESULTS: Among the 5 kinds of factors,the "human" factor took the lead,which accounted for 83% of the dispensing errors. Quality control carried out aimed at the primary factor contributed to the reduction of dispensing error cases,down from previous annual average 16 cases to 1 case of the first 10 month in 2008. CONCLUSION: TQM method contributed to the reduction of dispensing error rate in hospital outpatient pharmacy.