Introduction/Objective. To investigate the efficacy of Xiaozhoutian fire dragon moxibustion combined with traditional Chinese medicine on polycystic ovary syndrome (PCOS) with kidney yang deficiency. Methods. 80 patients with kidney yang deficiency type PCOS admitted were selected and randomly divided into the control group and the intervention group, with 40 patients in each group. The control group was given routine nursing care and traditional Chinese medicine (TCM) treatment, and the intervention group was treated with Xiaozhoutian fire dragon moxibustion based on the control group. After three months, the therapeutic effects of the two groups were compared by TCM symptom score, menstrual condition and serum sex hormone level. Results. Patients in the intervention group showed a significant improvement in the TCM symptom score compared with the control group after treatment; menstrual conditions such as duration of menstrual period, menstrual flow, degree of dysmenorrhea, and blood clots, and serum sex hormone levels such as luteinizing hormone (LH), follicle-stimulating hormone (FSH), luteinizing hormone/follicle-stimulating hormone ratio (LH/FSH), estradiol (E2), testosterone (T), and progesterone (P) were all better than those in the control group, and the difference was statistically significant (p < 0.05); the total effective rate of treatment for patients in the intervention group reached 92.50%, which was significantly higher than that of 72.5% of the control group (p < 0.05). Conclusion. Xiaozhoutian fire dragon moxibustion combined with traditional Chinese medicine has good clinical efficacy in treating PCOS with kidney yang deficiency, which can improve the symptoms and hormone level of patients and improve the quality of body.