Objective To investigate the effects of modified fluid-generating decoction combined with metformin on blood glucose indexes and inflammatory factor levels in type 2 diabetes mellitus (T2DM) patients with Yin deficiency-induced internal heat pattern. Methods A total of 90 T2DM patients with Yin deficiency-induced internal heat pattern were included and were randomly divided into a control group (n=45) or an observation group (n=45). The control group was treated with Metformin Hydrochloride Tablets, and the observation group was treated with modified fluid-generating decoction combined with Metformin Hydrochloride Tablets. Before treatment and after 3 months of treatment, the levels of blood glucose indexes (fasting blood glucose [FBG], 2-hour postprandial blood glucose [2h PBG], and glycosylated hemoglobin [HbA1c]) and inflammatory factors (serum C-reactive protein [CRP], interleukin-6 [IL-6], and tumor necrosis factor-α [TNF-α]) were compared between the two groups. Results Before treatment, there was no statistically significant difference in the blood glucose index or inflammatory factor level between the two groups (all P>0.05). After 3 months of treatment, the levels of FBG, 2h PBG, HbA1c, CRP, IL-6, and TNF-α in the two groups decreased as compared with those before treatment, and the levels in the observation group were lower than those in the control group (all P<0.05). Conclusion Modified fluid-generating decoction combined with metformin can effectively ameliorate the blood glucose indexes and reduce the levels of inflammatory factors in T2DM patients with Yin deficiency-induced internal heat pattern.