Objective To investigate the effect of Qibai Pingfei Capsule on pulmonary inflammation and pulmonary function in rats with chronic obstructive pulmonary disease (COPD) with syndrome of phlegm and blood stasis obstructing the lung. Methods A total of 80 male Sprague-Dawley rats were randomly divided into normal group, model group, spleen aminopeptide group, and Qibai Pingfei Capsule group. A rat model of COPD was established by forced swimming, passive smoking, and hypoxic environment. General status of the rats was observed; the total number of cells and the proportion of inflammatory cells in bronchoalveolar lavage fluid (BALF) were measured; lung histomorphological changes were observed under a light microscope; ELISA was used to measure the serum levels of interleukin-1β (IL-1β),interleukin-6 (IL-6), interleukin-8 (IL-8), and tumor necrosis factor-α (TNF-α); related pulmonary function parameters were measured, including forced expiratory volume in 0.3 seconds (FEV0.3), forced vital capacity (FVC), and FEV0.3/FVC ratio. Results Compared with the normal group, the model group had poor general status, a significant reduction in pulmonary function, marked inflammatory cell infiltration in lung tissue, significantly thickened alveolar septa, obvious mucous gland hyperplasia of the bronchial wall, and narrowing of the bronchial lumen, as well as significant increases in the total number of cells and the proportion of monocyte-macrophages, neutrophils, and lymphocytes in BALF and the serum levels of IL-1β,IL-6,IL-8, and TNF-α (P<0.05). Compared with the model group, the Qibai Pingfei Capsule group and the spleen aminopeptide group had significant improvements in the pathological changes of lung tissue, significant reductions in the total number of cells and the proportion of monocyte-macrophages, neutrophils, and lymphocytes in BALF and the serum levels of IL-1β,IL-6,IL-8, and TNF-α (P<0.05), and significant increases in FEV0.3,FVC, and FEV0.3/FVC ratio (P<0.05). The Qibai Pingfei Capsule group had significantly greater improvements in the above indices than the spleen aminopeptide group. Conclusion Qibai Pingfei Capsule can significantly improve pulmonary inflammation and pulmonary function in COPD rats with syndrome of phlegm and blood stasis obstructing the lung, possibly by downregulating serum inflammatory markers and inflammatory cell infiltration in lungs.