Objective To investigate the effects of Yinzhihuang Oral Liquid combined with reduced glutathione (GSH) on total bilirubin (TBIL), direct bilirubin (DBIL), glutamic-pyruvic transaminase (ALT) level and the resolution time of jaundice in newborn with neonatal jaundice. Methods Ninety newborns with neonatal jaundice treated in our hospital from April 2018 to April 2020 were randomly divided into study group and control group, with 45 cases in each group. The newborns in control group were treated with blue light irradiation combined with GSH; and the newbords in study group were treated with Yinzhihuang Oral Liquid on the basis of the control group. The level of TBIL, DBIL, and ALT before and after treatment of newborns in two groups were compared; as well as the resolution time of jaundice of newborns in two groups were also compared. Results After treatment, the level of TBIL, DBIL and ALT of newborns in two groups were all significantly lower than that before treatment (P<0.05); and the level of TBIL, DBIL and ALT after treatment of newborns in study group were significantly lower than that in control group (P<0.05). The resolution time of jaundice of newborns in study group was significantly shorter than that of control group (P<0.05). Conclusion Yinzhihuang Oral Liquid combined with GSH in the treatment of neonatal jaundice can effectively reduce the level of TBIL, DBIL and ALT, and shorten the resolution time of jaundice, which is worthy of popularization and application.