Tremendous achievements have been made in Western medicine in the past that provide fast relief of symptoms at the disease sites, particularly under critical conditions. However, some are either ineffective or produce undesirable adverse effects, or are too costly in some complex diseases, especially chronic diseases. On the other hand, traditional medicines strive to focus on the balance of the body in a holistic manner. Traditional medicines are increasing popular in the Western world, as reflected in the name changes from “alternative medicines” to “complementary medicines” or even “integrative medicines.” Traditional Chinese medicines (TCM) have been used in China for more than 2000 yr and have always followed the philosophy and principle of restoration, i.e., the yin and yang (balance of the body). As an important part of the pharmaceutical sector, the Chinese herbal drug industry has made rapid progress over the past decades. This chapter provides a review of its current status, including challenges and opportunities, specifically with regard to modernization and globalization of TCM.