This experiment was designed to study the effect of ”Xue Eu Zhu Yu Tang” made in the form of granule which is a Chinese traditional medicine recipe of promoting blood circulation and removing stasis on the restenosis after percutanous transluminal angioplasty (PTA) with iliac atherosclerotic model of purebred New Zealand rabbit. Denude endothelium of iliac of artery by 4F Fogarty balloon catheter and fed them with 2% cholesterol mix supplement for six weeks, and then, segmented atherosclerotic stenosis was formed. After PTA the rabbit was randomly divided into three groups: ”Xue Guan Tong” group, lovastatin group and control group. Stopping cholesterol supplement after PTA, four weeks after PTA, operated examination of blood TC, TG, artery angiograph and pathological finding showed: (1) The artery luminal diameter was 1.82±0.46 mm in ”Xue Guan Tong” group, 0.96 ± 0.71 mm in lovastatin group, 0.71 ± 0.53 mm in control group. The luminal diameter in ”Xue Guan Tong” group was significant larger than that of other two groups (P＜0.01 and P＜0.001). The restenosis rate of the diseased artery was 27% in ”Xue Guan Tong” group, 62% in lovastalin group and 90.09% in control group. There was a highly significant difference of restenosis rate between ”Xue Guan Tong” group and control groups (P＜0.005), (2) Intimal thickness was 0.27 ± 0.40 mm in ”Xue Guan Tong” group, 0.43 ± 0.04 mm in lovastatin group and 0.48 ± 0.10 mm in control group. The thickness in ”Xue Guan Tong” group was thinner than that of other two groups (P＜0.001). (3) There were fewer organelles in ”Xue Guan Tong” group by transmission electron micrograph, SMCs in control group and lovastatin group had more organdies and was in the status of hyperplasia. (4) There was no difference in blood TC and TG among three groups. In conclusion, ”Xue Guan Tong” had preventive effect on restenosis after PTA with rabbit iliac artery atherosclerosis model.