The invention discloses a formula of a traditional Chinese medicine for treating diabetic nephropathy. The formula is characterized by involving the following raw materials by weight: 6 parts of astragalus roots, 3 parts of Pseudostellaria heterophylla, 2 parts of angelica, 2 parts of radix rehmanniae, 2 parts of cornus officinalis, 2 parts of Salvia miltiorrhiza, 3 parts of raw coix seeds, 2 parts of earthworm, 2 parts of Poria, and 2 parts of rhizoma alismatis. Directed at qi-yin deficiency, i.e. the traditional Chinese medicinal core pathogenesis of diabetic nephropathy, the formula has the efficacy of supplementing Qi and nourishing Yin, dispersing blood stasis and promoting dieresis, and is suitable for different-stage diabetic nephropathy with the main manifestations of soreness and weakness of waist and knees, weakness all over the body, edema, foaming urine, nausea, skin pruritus, limb numbness or acroanesthesia (or chilling), dark red tongue, thin or greasy tongue coat, thin pulse or rapid pulse and the like. The formula involves simple medicines and can achieve a special effect. Previous long-term clinical practice and scientific research prove that the formula can significantly reduce the urinary protein excretion rate, delay the renal function progress, effectively improve glucolipid metabolism, effectively control blood pressure, improve the quality of life of patients, and greatly decrease kidney disease end point events, and has the advantages of stable long-term effect and good safety.