This paper summarizes Professor Peng Qinghua's clinical experience in staged differentiation and treatment of Sjögren's syndrome-related dry eye based on the "latent dryness" theory. The key pathogenesis of this condition is identified as the internal accumulation of dry heat. A staged differentiation and treatment approach is introduced. The early stage is characterized by external dryness triggering latent dryness， which disrupts the collaterals， leading to insufficient body fluids. The treatment focuses on clearing and dispersing dry heat while nourishing body fluids， using a modified Shashen Maidong Decoction. The middle stage is marked by the entrenched internal dryness， depletion of qi and yin， and deficiency and stagnation of nutrient-blood. The treatment emphasizes replenishing qi， nourishing yin， tonifying blood and moistening dryness， using a modified Shengmai Powder. The late stage is dominated by the exhaustion of liver and kidney， yin deficiency affecting yang， and dryness and stasis obstructing the collaterals. The treatment involves dual supplementation of yin and yang， resolving stasis， and moistening dryness， using a modified combination of Yougui Pill and Erzhi Pill.