Abstract: OBJECTIVE To understand the development situation of traditional Chinese medicine (TCM) formula granules and its confronted problems in Zhejiang province, provide reference to formulate related policies and management system. METHODS An investigation was made on the development situation of TCM formula granules through 5 manufacturing enterprise and 30 medical institutions in Zhejiang province. A retrospective and descriptive analysis of confronted problems was conducted, and corresponding management solutions were put forward for the problems. RESULTS 70% of these medical institutes had established and used smart TCM formula granules dispensary, however, the supervision of quality supervision, management on period of validity and management packaging appropriated to current situation were still to be perfected, and corresponding scientific research should be strengthened. CONCLUSION As the new used form of Chinese herbal medicine, TCM formula granules shall not be applied to the existing management systems and regulations about Chinese herbal medicine. Through investigation and analysis, new ideas for the management of TCM formula granules are put forward, in order to promote its faster and better development.