Diabetic retinopathy is one of the main causes of visual impairment and blindness on a global scale. At present, the limitations of anti-vascular endothelial growth factor agents, steroids, laser photocoagulation, and vitreous surgery have led to a growing awareness of the role of Chinese medicines in the treatment of diabetic retinopathy. This review first describes the ingredients and characteristics of the formulae including Chinese herbal formulaes, Chinese patent drugs and ancient processed drugs and summarizes the application of Chinese medicines and their mechanisms of action in the treatment of diabetic retinopathy. Due to the complexity of Chinese medicines, in-depth mechanisms, side effects of herb, and drug interactions need to be elaborated in future research. Chinese medicines have the potencial to protect the residual eyesight and delay the progression of disease, thereby offering a beneficial, exploitable option in the treatment/prevention of diabetic retinopathy.