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The prevalence of diabetic foot ulcers (DFU), one of the most common complications of diabetes mellitus (DM), varies significantly across different countries, but remains high globally. The presence of DFU is associated with escalated healthcare expenditures, compromised physical functioning, and diminished quality of life, with a 5-year mortality rate 2.5 times higher than diabetes patients without foot ulcers. Common therapeutic strategies for DFU include glycemic control, eradication of infections, alleviation of pressure on the ulcers, and facilitation of wound healing. CHM, a fundamental element of Traditional Chinese Medicine, has gained widespread recognition in both oral and topical applications for the management of chronic wounds, owing to its functions of detoxification, promotion of blood circulation, removal of blood stasis, and enhancement of wound healing, as outlined in Chinese Medicine theories. Therefore, it is imperative to conduct a comprehensive literature review on the utilization of topical CHM for treating DFU in order to provide evidence-based guidance for clinical practice.