Disclosed are an application of a CTHRC1 nucleic acid sequence or protein in preparing a reagent used to test cirrhosis of the liver or liver fibrosis, an application thereof in preparing a drug used to prevent or treat cirrhosis of the liver or liver fibrosis, and an application thereof to be used as a drug target in in-vitro selecting and preparing a drug for cirrhosis of the liver or liver fibrosis. The CTHRC1 nucleic acid sequence is represented as SEQ ID NO:1, and the CTHRC1 protein is represented as SEQ ID NO: 2.