Abstract: Painful diabetic neuropathy (PDN) is a common chronic complication of diabetes with a complex pathogenesis. The theory of "dryness-heat constraint and stagnation" proposed by LIU Wansu profoundly reveals the dynamic pathological process of fluid impairment,qi stagnation,and progression from dryness to stasis. Based on this theory,this article transcends the limitations of traditional PDN differentiation and treatment,which often focus on "yin deficiency and cold coagulation" or "qi deficiency and blood stasis. " It systematically analyzes the core pathogenic evolution of PDN:"internal accumulation of dryness-heat as the initial trigger,qi and yin deficiency leading to blood stasis as the pivotal transition, and the binding of stasis and heat obstructing the collaterals as the key to disease manifestation." Addressing the shortcoming of traditional therapeutic methods, an innovative stage-specific treatment system is constructed: in the early stage, clearing and draining dryness-heat while consolidating qi and yin (using modified Qingzao Jiufei Decoction) to protect unaffected collaterals; in the middle stage, supplementing qi and nourishing yin,harmonizing qi and blood (using Shaoyao Gancao Decoction combined with Siwu Decoction) to nourish damaged collaterals; in the late stage, innovatively applying the pungent-moistening and collateral-unblocking method (using Xuefu Zhuyu Decoction combined with Simiao Yongan Decoction) to unblock obstructed collaterals, supplemented with acupuncture and moxibustion for external therapies throughout the course. This study provides a new perspective on the differentiation and treatment of PDN in traditional Chinese medicine, integrating principles, methods, prescriptions, and herbs, and deepens the theoretical understanding of "diabetes-related painful impediment."