Objective To investigate the clinical effect of Yanghe Pingchuan Granule in the treatment of asthma-chronic obstructive pulmonary disease overlap (ACO) with kidney deficiency and phlegm turbidity. Methods A total of 40 patients with ACO with kidney deficiency and phlegm turbidity were divided into treatment group and control group using a random number table, with 20 patients in each group. The patients in the control group were given routine Western medicine treatment, and those in the treatment group were given Yanghe Pingchuan Granule in addition to the treatment in the control group. The course of treatment was 14 days for both groups. Serum levels of interleukin-2 (IL-2), interleukin-13 (IL-13), and immunoglobulin E (IgE), fractional exhaled nitric oxide (FeNO), and pulmonary function were measured before and after treatment. Results After treatment, both groups had a significant increase in serum IL-2 (P<0.05), significant reductions in serum IL-13, serum IgE, and FeNO (P<0.05), and significant increases in forced expiratory volume in one second (FEV1), forced vital capacity (FVC), and FEV1/FVC ratio (P<0.05). Compared with the control group after treatment, the treatment group had significantly greater increases in IL-2, FEV1, FVC and FEV1/FVC ratio and significantly greater reductions in IL-13 and IgE (P<0.05). Conclusion Yanghe Pingchuan Granule combined with routine Western medicine treatment can alleviate inflammation, reduce airway hyperresponsiveness, and improve pulmonary function in the treatment of ACO with kidney deficiency and phlegm turbidity.