Sixty chronic active hepatitis patients complicated with hyperbilirubinemia (total bilirubin > 171 mumol/L) were treated with combined treatment of Ganyan IV and Western medicine. The curative effect was compared with that treated with Western medicine alone as control (56 cases). Result showed that the effect of combined therapy group was much better than that of the control in eliminating the jaundice, descending the alanine transaminase (ALT) and improving the reversed A/G ratio (P < 0.05-0.001). In experimental studies, Ganyan IV was applied to the mice with acute liver damage formed by CCl4. It also showed significant effect on reducing total bilirubin and elevating the serum albumin statistically as compared with control (P < 0.05 = 0.01). In addition Ganyan IV could accellerating the bile excretion of normal as well as of liver damaged rats significantly. It was concluded that the Ganyan IV has the effects of treating jaundice, descending transaminase, elevating serum albumin and improving A/G ratio.