The present invention is directed to a therapeutic method of treatment of diabetes inducing kidney failure, comprising administering a therapeutically effective amount of Chinese herbal medicine to a subject in need. The Chinese herbal medicine is the decocting extract including the mixture of Grifola, Poria, Atractylodes Lancea Rhizoma, Rhizoma Alismatis, Pimenta officinalis seed, Rhizoma Zingiberis, Radix Aconiti Lateralis Praeparata, Phelloendron amurense bark, Radix Angelicae Sinensis, Radix Astragali, Herb Elephantopus, Honeysuckle Stem, Rhizoma Anemarrhenae, radix Rhubarb, Radix Panax notoginseng, and Radix Ginseng.