Abstract: OBJECTIVE To explore the factors of behavior selection among the stakeholders and the feasibility of the behavior of entrusted preparation of Chinese medicine preparations in medical institutions. METHODS Based on the game theory, the game models between the government and the medical institution, the medical institution and the entrusted party were constructed, and the influencing factors affecting the commissioned preparation behavior were analyzed and corresponding policy suggestions were put forward. RESULTS In the game between government and medical institution, the cost of government supervision, the social benefit lost and the financial subsidy, punishment and product reputation advantage obtained by medical institution were the important factors that affect the preparations behavior. In the game between the medical institution and the trustee, the income of the medical institution, the cost of self-compounding and the income and cost of the trustee also affected the behavior of the entrusted preparation. CONCLUSION It is feasible to entrust the preparation of Chinese medicine preparations in medical institutions. Finding the equilibrium point of profit among the stakeholders can realize the benign cycle of Chinese medicine preparation in medical institutions.