Objective To evaluate the efficacy and toxicity of dispersing phlegm and eliminating stagnation traditional Chinese medicine (TCM) treatment protocol (Jinlongshe oral liquid combined with Javanica oil emulsion injection) in treating postoperative colorectal cancer, and to observe the immunologic function and quality of life of the patients. Methods Sixty-eight patients with postoperative colorectal cancer were divided into two groups according to the patients' wishes:phlegm elimination group (n=36) received Jinlongshe oral liquid combined with Javanica oil emulsion injection, and chemotherapy group (n=32) received capecitabine combined with oxaliplatin (XELOX) protocol for 6 cycles. The changes of carcinoembryonic antigen (CEA) and carbohydrate antigen 19-9 (CA19-9), clinical symptoms of TCM, toxicity, immunologic function, and the quality of life (assessed by Karnofsky performance scale[KPS]) were observed. Results After 6 cycles of treatment, there were no significant differences in CEA or CA19-9 between the two groups (P>0.05), and the scores of clinical symptoms of TCM also showed no significant difference between the two groups (P>0.05). The incidences of leucopenia, hand-foot syndrome and allergy in the phlegm elimination group were significantly lower than those in the chemotherapy group (all P<0.05). Immune function examination showed that the proportions of CD4⁺ and CD8⁺ T lymphocytes after treatment were significantly lower than those before treatment in the two groups (both P<0.05), but the proportions of CD3⁺, CD4⁺, and CD8⁺ T lymphocytes, and the ratio of CD4⁺/CD8⁺ lymphocytes showed no significant differences between the two groups (P>0.05). The quality of life in the phlegm elimination group was higher than that in the chemotherapy group, and the difference of KPS scores was significant (P<0.05). Conclusion Compared with XELOX chemotherapy, TCM treatment of dispersing phlegm and eliminating stagnation can alleviate the toxic reaction and improve the quality of life in patients with intestinal cancer after operation.