OBJECTIVE： To improve dispensing quality of small package of TCM formula granule， reduce the rate of dispensing error and shorten dispensing time. METHODS： Key influential factors for small package of TCM formula granule dispensing in our hospital were found out from 5 respects of “man， machine， environment， method， material”； two cycles of PDCA cycle management intervention were conducted. Dispensing internal error and dispensing time were compared before PDCA cycle management intervention （Jul.-Dec. 2015， group A）， first cycle of PDCA cycle management intervention （Jan.-Jun. 2016， group B） and second cycle of PDCA cycle management intervention （Jul.-Dec. 2016， group C）， the effects of management were evaluated. RESULTS： By improving dispensing environment， establishing dispensing standard operation procedure， formulating reward and punishment system， staff training， after 2 cycles of PDCA cycle management intervention， the rate of small package of TCM formula granule dispensing error in TCM pharmacy of our hospital decreased from 4.19％ （170/4 061） before intervention that of group A to 1.69％ （85/5 043） and 0.98％ （53/5 408） in group B and C after intervention （P＜0.05 or P＜0.01）. Average dispensing time of each prescription with 7 doses were shortened from （9.08±2.56） min before intervention （group A） to （7.37±1.98）， （5.97±1.64） min in group B and C after intervention （P＜0.05）. CONCLUSIONS： PDCA cycle management intervention in our hospital can reduce the rate of small package of TCM formula granule dispensing error and shorten dispensing time.