Objective To investigate the effect of Liuwei Buqi Capsule on pulmonary function and inflammatory factors in a rat model of chronic obstructive pulmonary disease (COPD). Methods Sprague-Dawley rats were divided into normal group, model group, Guilong Kechuanning group, and high-, middle-, and low-dose Liuwei Buqi Capsule groups using a random number table, with 10 rats in each group. General status of the rats were recorded; a pulmonary function apparatus was used to measure forced vital capacity (FVC), forced expiratory volume in 0.3 seconds (FEV0.3), FEV0.3/FVC ratio, and peak expiratory flow; HE staining was used to observe the pathological changes of bronchopulmonary tissue; ELISA was used to measure the levels of interleukin 8 (IL-8), interleukin 1β (IL-1β), and tumor necrosis factor-α (TNF-α) in serum and bronchoalveolar lavage fluid (BALF). Results Compared with the normal group, the model group had poor general status, reduced pulmonary function, reduction or even shedding of the bronchial mucosa, an increase in submucosal inflammatory cell infiltration, and significant increases in the levels of IL-8, IL-1β, and TNF-α in serum and BALF (P<0.05). Compared with the model group, the high-, middle-, and low-dose Liuwei Buqi Capsule groups and the Guilong Kechuanning group had varying degrees of improvement in pulmonary function, slight pathological changes of lung tissue, and significant reductions in the levels of IL-8, IL-1β, and TNF-α in serum and BALF (P<0.05). Compared with the Guilong Kechuanning group, the low-dose Liuwei Buqi Capsule group had poor general status, reduced pulmonary function, increased pathological changes of lung tissue, and significant increases in the levels of IL-8, IL-1β, and TNF-α in serum and BALF (P<0.05). There were no significant differences in these indices between the high-, middle-, and low-dose Liuwei Buqi Capsule groups (P>0.05). The high-dose Liuwei Buqi Capsule group had significant improvement in general status and pulmonary function, slight pathological changes of lung tissue, and significant reductions in the levels of IL-8, IL-1β, and TNF-α in serum and BALF (P<0.05). Compared with the low-dose Liuwei Buqi Capsule group, the high- and middle-dose Liuwei Buqi Capsule groups had varying degrees of improvement in general status and pulmonary function, slight pathological changes of lung tissue, and significant reductions in the levels of IL-8, IL-1β, and TNF-α in serum and BALF (P<0.05). Compared with the middle-dose Liuwei Buqi Capsule group, the high-dose Liuwei Buqi Capsule group had significant improvements in general status and pulmonary function, slight pathological changes of lung tissue, and significant reductions in the levels of IL-8, IL-1β, and TNF-α in serum and BALF (P<0.05). Conclusion In a rat model of COPD, Liuwei Buqi Capsule can alleviate the pathological changes of lung tissue, improve airway inflammation, and increase pulmonary ventilation function.