OBJECTIVE： To improve the efficiency of drug dispensing and reduce dispensing error in the inpatient pharmacy. METHODS： The optimization of dispensing list and the estblishment of dispensing error early warning system in our hospital was introduced. The effects of the system were evaluated through comparing dispensing time， walking step of taking medicine and error rate among 10 dispensing lists of 5 pharmacists used by using dispensing list before and after optimization  in trials， and times of early warning interception errors occurred in the same period before （2016） and after （2017） using the system. RESULTS：Based on the information of original drug list， information rearrangement， addition of corresponding drug position code and identification code were conducted by using computer programming and bar code technology. The drugs in the list were arranged according to storage location of the pharmacy. The quantity of drug was converted from “n branch” to “x box y branch” according to drug package and specification in our pharmacy. The bar code of the hand ring was scanned automatically by using computer programming technology and bar code reader when pharmacists dispensed drugs； the information of it was tied to the information on the dispensing list to achieve real-time early warning of dispensing errors .The established system  could check scattered injection. Compared with 2 dispensing modes，the dispensing time was decreased by 27.9％ （P＜0.01）， walking step of taking medicine was decreased by 28.6％ （P＜0.01） in mode by using dispensing list after optimization， error rate was similar （P＞0.05） in 2 modes. By the end of 2017， the total number of intercepted errors was 1 321 since Mar. 2017. The error rate of specification was reduced from 0.07％ to 0.001％ during the same period of 2016. The staff was reduced from 21 to 18. CONCLUSIONS： The establishment and application of the system not only improve drug dispensing efficiency but also reduce the potential risk of dispensing error-induced severe medical event.