A drug for treating kidney deficiency and collateral stasis type diabetic nephropathy stage IV, which consists of: 25-35g raw astragalus, 25-35g raw oyster, 25-35g Smilax, 25-35g Gorgon, 13-18g Hedyotis, ghost arrow Feather 8‑15g, Danshen 8‑13g, habitat 8‑12g, yam 7‑12g, dogwood 8‑12g, mulberry octopus 5‑12g. The present invention removes Scrophulariaceae, Atractylodes atractylodes, Radix Puerariae, Safflower, Alisma, and Rosa laevigata on the basis of Ziyue Yishen formula, and adds raw oyster, Hedyotis, ghost arrow feather, salvia miltiorrhiza, and mulberry octopus to strengthen blood circulation. Dispersing stagnation, removing blood stasis and dredging collaterals, clearing heat and detoxifying, so as to improve kidney function and reduce urine protein.