〔Abstract〕 Objective To observe the effect of Shugan Xiaoying formula combined with western medicine on hyperthyroidism. Methods 125 patients with hyperthyroidism treated in Taishan Hospital of traditional Chinese medicine from January 2019 to December 2019 were selected as the research object. According to the order of admission, the patients were divided into control group and observation group. 59 cases in the control group were treated with conventional western medicine, and 66 cases in the observation group were treated with Shugan Xiaoying formula combined with western medicine. The patients were followed up for 6 months. The thyroid function level, therapeutic effect, incidence of adverse reactions and recurrence rate were compared between the two groups before and after treatment. Results There was no significant difference in thyroid levels between the two groups before treatment (P > 0.05); After treatment, the levels of FT3 and FT4 in the observation group were significantly lower than those in the control group, while the level of TSH was significantly higher than that in the control group (P < 0.05). The total effective rate of the observation group was 92.42%, higher than 76.27% of the control group, the recurrence rate of the observation group was 1.52%, lower than 10.17% of the control group, and the incidence of adverse reactions was 6.06%, lower than 33.90% of the control group (P < 0.05). Conclusion In the treatment of patients with hyperthyroidism, Shugan Xiaoying formula combined with western medicine can significantly improve the level of thyroid function, improve the curative effect of clinical treatment, and reduce the adverse reactions in the process of treatment.