Phage display technology refers to a high-throughput in vitro screening technology for extracting required peptides/ proteins from colonies with mass mutants. Due to its high efficiency, practicability and convenience, it has been widely applied in pharmaceutical research and development, as well as target protein screening for active ingredients of traditional Chinese medicines. Target protein is the binding site of drug molecules in vivo, and good targets are the basis of excellent pharmaceuticals. This article summarizes the advance in studies on the phage display technology and its application in targeted protein screening for active ingredients of Chinese materia medica.