Abstract: OBJECTIVE To investigate the effect of Bao Yuan Decoction on immune function and liver function in patients with chronic infectious hepatitis. METHODS A total of 166 patients with chronic hepatitis B from Feb. 2014 to Feb. 2016 from hepatology department in our hospital were selected, and were divided into control group and experiment group, with 83 cases in each group. Patients in control group were treated with adefovir dipivoxil, and in experiment group were treated with Bao Yuan Decoction on the basis of control group. The immune function, liver function, and hepatic fibrosis index levels of the two groups were recorded, and the clinical effect and incidence of adverse reaction were compared. RESULTS There were 73 cases of effectiveness in experiment group and 62 cases in control group, but there was no significant difference. The peripheral blood levels of CD₃⁺, CD₄⁺ T lymphocytes and CD₄⁺/CD₈⁺ in experiment group were (66.25±8.67)%, (44.39±6.16)% and (1.71±0.24), which were higher than those in control group, levels of CD₈⁺ T lymphocytes was (26.34±3.53)%, which was lower than that of contol group (P＜0.001).Levels of serum alanine aminotransferase (ALT), aspartate aminotransferase (AST), total bilirubin (TBil), albumin (ALB), hyaluronic acid (HA), type III procollagen (PC III), type IV collagen (IV-C) and laminin (LN) in experiment group were (42.28±5.18)U/L, (56.47±7.65)U/, (24.34±2.78)μmol/L, (40.04±4.37)g/L,(80.04±11.15)ng/ml, (19.17±2.41)ng/ml, (65.45±8.15)ng/ml and (98.75±12.15)ng/ml, which were lower than those in control group (P<0.001). there was no significant difference in adverse reactions between the two groups. CONCLUSION Bao Yuan Decoction can significantly improve the cellular immune function of patients, improve liver function, prevent liver fibrosis, and the safety is high.