Objective: To explore the therapeutic effect of Yangyin Qingmai Decoction (YQMD) in combination with conventional Western medicine for patients with early to middle stages of diabetic nephropathy (DN) presenting with Qi-Yin deficiency. Methods: A total of 100 individuals diagnosed with type 2 DN accompanied by Qi-Yin deficiency syndrome were recruited. They were divided into the combined therapy group (n=50) and the Western medicine group (n=50) according to different treatment methods. The Western medicine group received routine therapy with dapagliflozin and insulin, while the combined therapy group received additional YQMD on the basis of the same Western regimen. Both groups were treated for 12 weeks. Changes in traditional Chinese medicine (TCM) syndrome scores, urinary albumin-to-creatinine ratio (UACR), 24-hour urinary protein excretion, glycated hemoglobin (HbA1c) levels, and the incidence of adverse reactions were compared between the two groups. Results: After 12 weeks of treatment, the overall effective rate of TCM syndrome improvement was higher in the combined therapy group than in the Western medicine group (92.0% vs. 78.0%, P <0.05). UACR levels, 24-hour urinary protein excretion, HbA1c level, fatigue and lassitude score, polydipsia score, and lumbar and knee soreness and weakness score in the combined therapy group were lower than those in the Western medicine group (P<0.05). There was no significant difference in the incidence of adverse reactions between the two groups (P>0.05). Conclusion: YQMD combined with Western medicine shows marked benefits for patients with Qi-Yin deficiency syndrome at the early to middle stages of diabetic nephropathy. It can effectively improve TCM syndrome manifestations, reduce urinary protein levels, improve glycemic control, and is well tolerated. This integrated approach has promising clinical application value.