【Abstract】 Objective To analyze the clinical efficacy of traditional Chinese medicine ion implantation combined with knee arthroplasty in the treatment of knee osteoarthritis (KOA) and explore its mechanism. Methods From January 2010 to December 2016, 146 patients with KOA were enrolled in this study. According to their treatment, they were divided into control group and observation group. The control group was treated with knee arthroscopic debridement on the basis of KOA routine treatment. The observation group was treated with Chinese medicine ion implantation on the basis of control group’3 treatment. MMP13, interleukin1 (IL1), tumor necrosis factora (TNFɑ), transforming growth factorβ (TGFβ), knee pain, knee function, swelling degree, osteoarthritis index score and clinical efficacy were observed. Results The levels of IL1, TNFɑ and TGFβ in the observation group were significantly lower than those in the control group (P＜005). The VAS and Lysholm scores in the observation group were significantly lower than that in the control group (P＜005). At the end of treatment, the degree of knee swelling in the observation group was significantly lower than that in the control group (P＜005). The scores of WOMAC scores in the observation group were significantly higher than those in the control group (P＜005). The total effective rate in the observation group (9589%) was significantly higher than that in the control group (8493%) (P＜005). Conclusion Chinese medicine ion implantation combined with knee arthroplasty can be used as a clinical treatment for the treatment of KOA by regulating the inflammation system and regulate the level of inflammatory factors in order to achieve good clinical efficacy and certain safety.