Objective: To analyze the diseases condition of the elderly patients with early and middle stage osteoarthritis of the knee took the Kidney-tonifying and tendons-relaxing formula orally, combined with fumigations and odium hyaluronate injection. Methods: A total of 78 cases of elderly knee osteoarthritis patients were selected in our hospital from August 2011 to February 2014 as observation group. 88 cases of joint function normal healthy people were chosen as the control group. After treatment, differences of serum protein expressions and CTX II, COMP, HA levels as well as related factors of Hippo-Yap signaling pathway in the synovial fluid, such as HMGB2, CCL1 and PD-1of the two groups were compared. Results: after treatment, serum PON-1, paraoxonase-3, AMBP, ApoM, KAP and TN expression levels in the observation group were higher than those of the control group patients. APOL1 level was lower than that of the control group. After 1 month, 3 months and 6 months’ treatment, serum COMP level in the observation group was lower than that in the control group patients. CTX II, HA levels were higher than those in the control group. After 1 month, 3 months and 6 months’ treatment YAP, BCL-2 levels in synovial fluid in the observation group were higher than those in the control group. Synovial fluid HMGB2 CCL1, NO and PD-1 levels of the observation group patients after treatment were lower than those of the control group. Conclusions: the elderly patients with early and middle stage knee osteoarthritis can be treated by oral administration, fumigation combined with sodium hyaluronate injection in the treatment of knee osteoarthritis, which can optimize the whole body and local non-infective inflammatory state, and promote the rehabilitation of the patients.