Objective: To observe the clinical efficacy of Kaixin Capsule (KXC, 开心胶囊), a Chinese compound preparation, in treating type 2 diabetes mellitus (DM) complicated with abnormal lipidemia. Methods: Seventy-two DM inpatients were medicated on the basis of administering conventional hypoglycemics, and KXC was orally taken. They were compared with those patients only taking hypoglycemics to observe the change of blood lipid before and after treatment. Results: The total cholesterol of KXC combined with hypoglycemics group had their blood lipid lowered by 14% after treatment and triglyceride lowered by 36%, HDL-C raised by 11%, and LDL-C lowered by 24%. Compared with only hypoglycemics treatment, there was significant difference (P<0.01). Conclusion: KXC has good blood lipid regulating effect on DM complicated with abnormal lipidemia.