Chinese medicine dispensing granule is made by qualified decoction pieces with modern pharmaceutical technology, which has the characteristics of flexible prescription, flexible dose, fast onset and easy absorption. However, there is great controversy in whether it has curative effects, also there are problems with non-conformant standard of prescription, high price, and incomplete varieties. In this case, advantages and disadvantages of present Chinese medicine dispensing granule are analyzed and discussed thoroughly in this article so that we can provide references for the benign development of Chinese medicine dispensing granule industry.