Diabetic fatty liver belongs to the category of “phlegm evidence and dysthymia” in traditional Chinese medicine (TCM). The clinical picture is a dark tongue with purple spots, petechiae and greasy coating. The mechanism of the disease is based on qi stagnation and blood stasis, with liver and gallbladder dampness and heat as the symptoms, and poor diet, poor mood and loss of drainage of the liver as the causative factors. When dealing with the disease, we should first distinguish the deficiency from the reality. If you see obesity, tiredness and weakness, poor appetite and abdominal distension, etc., it is a deficiency; if you see pain in the liver area, fullness and discomfort, purple and dark tongue, white and greasy coating, it is a real evidence. Treatment should take into account both the symptoms and the root cause, and pay attention to relieving dampness, resolving phlegm, activating blood circulation and dispelling stagnation. In the early stage of fatty liver, the main points are: qi stagnation type, blood stasis type and phlegm-damp type. In the later stage, the deficiency and reality are mixed: stagnant spleen deficiency type, Yin deficiency and blood stasis type. In the later stage, the treatment of liver stasis and spleen deficiency and yin deficiency and blood stasis should be mainly based on prodigality and consistent decoction and diaphragmatic stasis expulsion soup. The specific treatment of the 3 types of the first stage is as follows: 1. Qi stagnation type: the treatment is to dredge the liver and relieve depression, move Qi and harmonize the middle. The formula should be based on Chai Hu Dredging Liver San and Yi Yao San and the formula. The medicine uses Chai Hu 10 grams, Citrus Aurantium 6 grams, White Peony 15 grams, Licorice 6 grams, Angelica 10 grams, Poria 10 grams, Atractylodes Macrocephala 10 grams, Zegna 15 grams. 2. Blood stasis type: the method is to dredge the liver and nourish blood, activate blood circulation and remove blood stasis. The main method is to add and subtract the following: 6 grams of peach kernel, 6 grams of neem, 6 grams of yuan hu, 10 grams of wuling fat, 10 grams of salvia, 10 grams of Chuanxiong, 6 grams of caojiao, 15 grams of hawthorn. 3, phlegm-damp type: the treatment is to dispel dampness, remove turbidity, clear heat and detoxify. The formula is based on the following formula: Atractylodes Macrocephalae 10 grams, Thicket 6 grams, Green Peel 10 grams, Chen Pi 6 grams, Plantago ovata 15 grams, Lotus leaf 20 grams, Zedoary 15 grams, Licorice 6 grams.