This paper discusses effects and characteristics of Red Halloysite when used by doctors to treating various diseases in Han-Tang dynasties, through surveying and synthesizing existing TCM literatures. Red Halloysite was used to cure diarrhea as it promotes astriction and stemming desertion. It was used to treat feng diseases due to its effect of heavy tranquillization and tonifying marrow. It was also used to treat menstruation and leukorrhea diseases due to its effect of tonifying marrow and removing blood stasis. In the meantime, it was used to nourishing the body for its effect on replenishing marrow and essence.Furthermore, it also had the functions of replenishing heart-qi, resolving phlegm, and promoting tissue regeneration and healing of wounds.