Objective:To observe the influence of Jiedu Huayu Jianpi Formula on the expression of phosphatase and tensin homolog deleted on chromosome ten(PTEN) and E-cadherin(E-cad)in rats of chronic atrophic gastritis with dysplasia. MethodsRat model of chronic atrophic gastritis with dysplasia was established by N-methyl-N’-nitro-N-nitrosoguanidine(MNNG) integrated modeling method. Rats were randomly divided into the model group, western medicine group(retinoic acid)and Chinese medicine group(Jiedu Huayu Jianpi Formula),and the normal rats were taken as the normal control group. Drug intervention was carried out in the corresponding group. The expressions of PTEN and E-cad in mRNA and protein level were detected by RT-PCR and Western blot.  Results:Compared with the normal control group,the expressions of PTEN and E-cad in mRNA and protein level were significantly decreased in the model group(P<0.01),there were no statistical differences on the expressions of E-cad in mRNA and protein level between the control group and Chinese medicine group(P>0.05). Compared with the model group,the expressions of PTEN and E-cad in mRNA and protein level were significantly increased in Chinese medicine group and western medicine group(P<0.05). Compared with the western medicine group,the expressions of PTEN and E-cad in mRNA level were significantly increased in Chinese medicine group(P<0.01),the protein expression of PTEN was decreased and the protein expression of E-cad was increased in Chinese medicine group(P<0.01).  Conclusion:Jiedu Huayu Jianpi Formula can induce the increasing protein expressions of PTEN and E-cad in gastric mucosal cells and consequently treat the chronic atrophic gastritis with dysplasia and reverse the precancerous lesions of gastric cancer.