The basic theory of TCM shows its unique understanding of the zang-fu organs, meridians and collateral channels, qi, blood and body fluids, and pathogeny. The diagnostic method of TCM consists of the "four examination methods" and the differentiation of symptoms. The former refers to visual inspection of the complexion, auscultation, reading the pulse and directly asking about the patient's conditions. The differentiation of symptoms means after the actual circumstances are gathered through these examinations and analyses, the proper method of treatment is induced. TCM pharmaceutical treatment is often accompanied by acupuncture, massage therapy and qigong (breathing exercises). 

The Yellow Emperor's Canon of Medicine, the earliest and most comprehensive medical classic from both the theoretical and clinical standpoints, was compiled more than 2,000 years ago, and laid a theoretical foundation for TCM. Later, other authoritative medical books appeared, such as the Classic of Difficulties, Treatise on Febrile and Other Diseases and Causes and Symptoms of Diseases. Shen Nong's Materia Medica is the earliest known pharmacopoeia in China. The Materia Medica of the Tang Dynasty was the first pharmacopoeia published by the government in ancient China, as well as being the earliest state pharmacopoeia in the world. The Compendium of Materia Medica compiled by Li Shizhen of the Ming Dynasty contains details of 1,892 kinds of herbs and 10,000 prescriptions.

Following the popularization of the use of natural medicines and non-medicinal treatment in foreign countries, people all over the world have become more interested in TCM and pharmacology in recent years. Cooperations in TCM and pharmacology are increasing day by day. Cooperative relations have been established between China and Japan, the United States and Germany. In addition, seven traditional medicine and pharmacology centers have been established in China by the WHO. The number of foreign students who come to China to study TCM ranks first among those studying natural sciences in China. An agreement has been reached to run a TCM school cooperatively between Beijing University of Traditional Chinese Medicine and a British national university. It will be the first regular university in Britain, and even in Europe, to teach TCM. Japan and the Republic of Korea (ROK) also have TCM schools. France, the United States, Italy, Australia and some other countries have established TCM colleges or acupuncture and anaesthesia colleges, and Munich University in Germany has its Institute on the Theory of Traditional Chinese Medicine.