It is the view of the authors that accumulation of heat and dampness in the heart and stomach and deficiency of both spleen and kidney with blood stasis would be the main predisposing factors in pathogenesis of incipient diabetic nephropathy. A controlled clinical study of 32 patients treated with modified recipe of Wang Kentang's Bai Fu Ling Wan, a proved formula of clearing away the stomach-heat, purging the heart fire, strengthening the stomach and tonifying the kidney, and simultaneously resolving blood stasis and turbid qi was performed. The total effective rate was 93.8%, superior to that in the control group treated with Capoton (59.9%). A marked improvement in symptoms, control of blood glucose level and reduction of urinary protein obtained in the treatment group suggests that this treatment is effective in retarding the development of the disease.