Abstract: Objective To observe the clinical effect on Yanbinruzheng capsule in the treatment of compensated stage and decompensated stage liver cirrhosis. Methods Total of 41 patients with compensated stage and decompensated stage liver cirrhosis were randomly assigned to treatment group (21 cases) and control group (20 cases). Treatment group alone had Yanbinruzheng capsule 1500 mg once time, 2 times daily; control group received Yanbinruzheng capsule 2500 mg once time, 3 times a day. Two groups were treated for 48 weeks. According to the condition of individual patients, antiviral drugs, treatments that protect liver and lower transaminase and other supportive treatments may apply to both groups (telbivudine, diammonium glycyrrhizinate, Xiaoyanlidan tablets, Yinzhihuang capsule). Results Observation indicated that the use of “Yanbinruzheng capsule” combined with antiviral drugs can improve the liver morphology, reduce the width of portal vein, shrink or normalize splenomegaly, significantly reduce or normalize the level of liver fibrosis. In contrast to the control group, treatment group has significantly improved liver function or normalized the liver function of patients with liver cirrhosis. Conclusions Yanbinruzheng capsule improves liver function and treats liver cirrhosis.