OBJECTIVE： To study new mode of hospital drug supply chain under New Medical Reform， and to introduce drug logistics extension service and evaluate its effects in children’s hospitals. METHODS： The mode and experience of drug supply chain in China were clarified and analyzed. The effects of the mode were compared between previous and new districts of our hospital （adopting original routine management mode and using drug logistics extension service as new mode） in respects of inventory management， business volume， operation cost and efficiency of hospital pharmacy department， etc. RESULTS： In drug logistics extension service mode of new district in our hospital， drug distribution enterprises undertook the purchase， storage， transportation and supply of hospital drugs and each link of drug dispensing terminal； pharmacy department of the hospital was responsible for pharmaceutical administration， drug quality control， rational drug use monitoring， drug consultation and clinical pharmaceutical care. The work of hospital pharmacy department had been improved from the three aspects of drug supply chain， automated pharmacy construction and labor dispatch staff management. Comparison results showed pediatric drug purchase completion rates of previous and new district were 87.86％ and 95.43％； the number of hospital pharmaceutical staff were 80 and 13； the number of pharmacists by labor dispatch were 0 and 43； the average dispensing time of each prescription were 25 s and 10 s， respectively. CONCLUSIONS： Drug logistics extension service can optimize drug supply security process of children’s hospital， improve work efficiency， save hospital operating costs and medical resources， and improve the hospital pharmaceutical care capabilities.