Objective To investigate the clinical effect of integrated traditional Chinese and Western medicine therapy in the treatment of intrahepatic cholestasis of pregnancy and its effect on maternal and fetal outcome. Methods A total of 60 patients with intrahepatic cholestasis of pregnancy were randomly divided into observation group and control group, with 30 patients in each group. The patients in the control group were given conventional Western medicine treatment with ursodeoxycholic acid, Transmetil, and reduced glutathione, and those in the treatment group were given Yinzhihuang oral liquid in addition to the treatment in the control group. The serum levels of total bile acid (TBA), alanine aminotransferase (ALT), aspartate aminotransferase (AST), and total bilirubin (TBIL) were measured for both groups. The score of pruritus was assessed and clinical outcome was observed for both groups, and maternal and fetal outcome was evaluated. Results Both groups had significant reductions in the serum levels of TBA, ALT, AST, and TBIL after treatment (P<0.05), and there was a significant difference in the change in TBIL after treatment between the two groups (P<0.05). Both groups had a significant reduction in the score of pruritus after treatment (P<0.05),and the observation group had a better outcome of pruritus than the control group (P<0.05). Compared with the control group, the observation group had significantly longer gestational weeks and significantly lower blood loss within 24 hours after delivery, incidence rate of preterm birth, and rate of admission to the neonatal ward (P<0.05). Conclusion Integrated traditional Chinese and Western medicine therapy has a good clinical effect in the treatment of intrahepatic cholestasis of pregnancy and can significantly reduce maternal and fetal risks in the perinatal period.