Objective: To study the effect of self-prepared Qingfeixuanxie Decoction on the clinical symptoms, lung function and inflammatory response of patients with chronic obstructive pulmonary disease (COPD) in the acute exacerbation stage (AECOPD). Methods: A total of 96 AECOPD patients were equally randomized into a control group and an observation group. Fourteen days after treatment, the clinical efficacy of the two groups was evaluated, and the clinical symptom scores, lung function, blood gas indicators, serum inflammatory response marker levels, the Self-Rating Anxiety Scale (SAS), the Self-Rating Depression Scale (SDS), the sleep quality score and quality of life score between the two groups before and after treatment were compared. Results: The total effective rate of the observation group was 91.67%, which was significantly higher than 72.92% of the control group (P<0.05); after treatment, the two groups obtained apparent mitigation in terms of the clinical symptoms, forced expiratory volume in the first second (FEV1), FEV1/forced vital capacity (FVC), partial pressure of carbon dioxide (PaCO2), partial pressure of blood oxygen (PaO2), arterial oxygen saturation (SaO2), and serum interleukin-6 (IL-6), interleukin-8 (IL-8), C-reactive protein (CRP), tumor necrosis factor-α (TNF-α) expression levels compared to those before treatment (P<0.05), with better performance in the observation group than the control group (P<0.05). The SAS and SDS scores of the two groups of patients after treatment and 1 month after treatment showed a notable decrease (P<0.01). Patients in the observation group were recorded with higher sleep quality scores, shorter time to fall asleep, and longer sleep time than those in the control group. Higher scores of working conditions, life functions, and physical strength on the CCQQ scale than the control group were also observed in the observation group (P<0.05). Conclusion: Qingfeixuanxie Decoction can improve the clinical efficacy of patients with AECOPD, further mitigate the clinical symptoms and the lung functions of patients, and inhibit inflammatory reactions.