Osteoarthritis of the knee is a chronic progressive bone and joint disease that occurs mostly in the elderly. As the demographic structure of our society ages, this disease has become an increasingly important issue not only as a medical problem, but also as a social problem. Therefore, to clarify the etiology and pathogenesis of the disease, prevention and treatment from the root has become an important issue for the orthopedic science community in various countries. Epidemiologically, the onset of knee OA is closely related to several factors such as age, obesity, genetics, hormones, exercise, trauma, and occupation. The basic pathological changes are primary proliferative changes of the joint, mainly in the perichondrium and degenerative changes of synovial and articular cartilage. The synovial membrane and periarticular support structures are also involved in the pathogenesis of the joint. This disease belongs to the category of “bone paralysis” and “paralysis” in Chinese medicine, and Chinese medicine has certain advantages in treating this disease. The treatment methods are summarized here. There are many methods of external treatment of Chinese medicine, such as fumigation, external application, and ionization of Chinese medicine, etc. However, most of the treatment is based on identification of the disease, and most of the drugs are used to invigorate blood stasis and warm the meridians, which are reported to be effective. In 90 cases of osteoarthritis of the knee joint treated with fumigation solution that tonifies the liver and kidney, activates blood circulation, relieves pain, and warms the meridians, the apparent efficiency was 78.9% and the total effective rate was 95.6%. The treatment principle of activating blood circulation and eliminating blood stasis, promoting blood circulation and decreasing swelling was adopted. The clinical study showed that it had obvious efficacy on various symptoms of knee OA, especially on the improvement of joint flexion function. The improvement was obvious. Peng Taiping et al. conducted experimental observation on the therapeutic effect and efficacy of ion introduction of the Chinese herbal medicine Yi kidney rejuvenating solution, and found that it has significant effect on cartilage tissue repair and has good therapeutic effect on knee OA. The external treatment method of Chinese medicine has the effect of activating blood circulation, dispelling wind and dampness, and heat or ion introduction can make the skin mucous membrane congested and dilated, so that the active ingredients of the drug can penetrate into the joint tissue, and the synergistic effect of the two can accelerate the circulation of local blood and lymphatic fluid, reduce venous stasis, lower intraosseous pressure, promote the absorption of joint effusion, relieve pain and swelling, and thus achieve the effect of improving joint function.