The invention discloses a diabetic peripheral neuropathy treatment medicine and a manufacturing method thereof. The medicine is mainly prepared from radix astragali, radix rehmanniae, rhizoma dioscoreae, angelica sinensis, cornus officinalis, cassia twig, salvia miltiorrhiza, lumbricus and leech. The medicine has efficacies of Qi tonifying, Yin nourishing, kidney tonifying, blood circulation promoting, stasis removing and meridian activating and has functions of reducing blood glucose, increasing microvascular diameter and blood flow volume, increasing sciatic nerve conduction velocity and increasing sural nerve tract area, myelin sheath fiber number and myelin sheath fiber density. The medicine can be used for treatment of diabetic peripheral neuropathy and has advantages of remarkable curative effects, quick action, short treatment period, safety and avoidance of relapse and side effects.