Abstract: OBJECTIVE to study the application of PDCA circulation management method in the basic drugs management of hospital and its influence on the rational usage of drugs. METHODS formulate and promote a series of implementation plans and measures about national basic drugs system, adopt PDCA circulation principle and strategy to strengthen the implementation of all intervention plans, inspect the basic drug usage situation of hospital and the change in the rational usage of drugs after the implementation. RESULTS after the adoption of PDCA circulation management, the proportion of the selection of basic clinical drug types, the equipping rate of clinical drugs, the usage rate of basic drugs and the usage amount of basic drugs from 54.5%, 32.4%, 23.0% and 17.6% respectively in 2013, raised to 75.07%, 45.25%, 45.57% and 29.29% at the first half of 2015; the proportion of hospital medicine fell to 36.67% from 40.12% in 2013, indicated the rationality of clinical drugs usage had improved?continually. CONCLUSION the PDCA circulation management method can effectively give priority to the rational use of basic drugs in hospital.