Objective: To investigate the effect of Paecilomyces hepiall chen on serum inflammatory factors, oxidative stress and renal function in patients with diabetic nephropathy. Methods: A total of 124 cases of diabetic nephropathy patients were selected as the research object, based on the random data table they were divided into the control group and the observation group, 62 cases in each group, two groups of patients were given conventional treatment, on this basis, the patients in the control group were treated with Valsartan Capsules treatment, while patients in the observation group were given Valsartan Capsules combined with Paecilomyces hepiall chen treatment. To compare the levels of blood pressure[systolic blood pressure (SBP), diastolic blood pressure (DBP)], inflammatory factor [tumor necrosis factor -α (TNF-α), high sensitive C reactive protein (hs-CRP)], oxidative stress[superoxide dismutase (SOD), malondialdehyde (MDA)] and renal function index[serum creatinine (Scr), urea nitrogen (BUN)] of the two groups before and after treatment. Results:Before treatment, there were no significantly different of the levels of SBP, DBP, TNF-α, hs-CRP, SOD, MDA, Scr and BUN between the two groups. After treatment, the observation group SBP, DBP, TNF-α, hs-CRP, MDA, Scr and BUN level were (135.71±15.64) mmHg, (84.96±13.97) mmHg, (46.37±5.92) ng/L, (5.99±0.94) mg/L,(20.91±2.38) μmol/L, (83.86±10.16) μmol/L and (6.53±1.37) mmol/L, were significantly lower than before treatment, and after treatment the TNF-α,hs-CRP,MDA,Scr and BUN in observation group were significantly lower than the control group (P<0.05); Compared with the levels in the same group before treatment, the two groups of SOD levels were significantly increased, and the observation group [(93.21±7.06) U/mL] was significantly higher than the control group[(79.84±6.12)U/mL] (P<0.05). Conclusion: Paecilomyces hepiall chen on treatment of diabetic nephropathy, can effectively relieve chronic inflammation and oxidative stress, improve renal function, has an important clinical value.