Liver cancer is one of the most common clinical oncological diseases. Its incidence and fatality rate are in the forefront of all cancers. In addition，most cases of liver cancer in China are initially diagnosed in late stage，which is difficult to treat，with high recurrence and metastasis rate and poor prognosis. Modern medicine has surgical operation，interventional therapy，chemoradiotherapy，targeted therapy，immunotherapy and other means in the treatment of liver cancer. The curative effect is accurate，but there are many limitations such as side effects，poor compliance and high drug resistance. Traditional Chinese medicine believes that the occurrence of liver cancer is related to dampness，heat，phlegm，toxin，blood stasis，deficiency and other pathological factors. The disease is characterized by positive deficiency and evil excess，and the treatment is based on syndrome differentiation and treatment，with one prescription for one patient，which can effectively improve the quality of life and prolong the survival period of patients. Xiaochaihu Decoction（小柴胡汤）is a classic prescription for the treatment of liver cancer recorded in Treatise on Febrile Diseases，with the effect of reconciling Shaoyang，soothing liver and strengthening spleen. In recent years，many studies have found that it has a good therapeutic effect on liver cancer. In clinical studies，Xiaochaihu Decoction can improve the curative effect of surgery，promote postoperative recovery，improve the adverse reactions of radiotherapy and chemotherapy，treat complications such as cancerous fever and prevent liver cancer. In terms of basic research，the mechanism of Xiaochaihu Decoction in the treatment of liver cancer may be related to promoting mitochondrial apoptosis，blocking cell cycle，reversing chemotherapy resistance，improving immune function and antioxidant effect. This paper mainly discussed the treatment of liver cancer by Xiaochaihu Decoction from three aspects，including basic prescription theory，clinical research and basic research，aiming to further study the new progress of Xiaochaihu Decoction in the treatment of liver cancer and provide a broader idea for clinical diagnosis and treatment.