Neonatal jaundice is one of the most common clinical symptoms of newborns. The level of serum bilirubin is commonly used to evaluate the degree of jaundice in children. Infants with jaundice, especially that caused by hemolysis within 24 days after birth, are at risk of developing acute and chronic bilirubin encephalopathy. Modern research shows that traditional Chinese medicine has good clinical efficacy in the treatment of neonatal jaundice, and traditional Chinese medicine can play a role in the treatment of neonatal jaundice by regulating bilirubin metabolism and bile acid synthesis and transport, inhibiting immune and inflammatory reactions, affecting liver collagen formation and other mechanisms.