Objective To analyze the clinical efficacy of Jinlida granules combined with dapagliflozin for treatment of elderly patients with type 2 diabetes mellitus (T2DM). Methods A total of 142 elderly T2DM patients admitted in our hospital from December 2020 to December 2021 were recruited and then randomly divided into study and control groups, with 71 patients in each group. Those from the control group were treated with dapagliflozin, while those in the study group were given dapagliflozin and Jinlida granules. The therapeutic efficacy, indicators of glucose metabolism, pancreatic islet function, oxidative stress and levels of inflammatory factors were observed and compared between the two groups. SPSS statistics 22.0 was used for statistical analysis. Student′s t test or Chi-square test was employed for intergroup comparison depending on data type. Results The study group had significantly higher therapeutic effective rate than the control group [67 (94.37%) vs 58 (81.69%), P<0.05). Statistical differences were observed in 2-hour postprandial plasma glucose [(8.4±1.6) vs (9.5±2.4) mmol/L], fasting blood glucose [(6.1±0.3) vs (6.6±0.8) mmol/L], and glycosylated hemoglobin A1 [(6.2±0.7)% vs (6.8±0.3)%] between the two groups (all P<0.05). The insulin resistance index [(2.2±0.5) vs (2.7±0.4) ]was obviously lower, while the function of pancreatic β cells [(69.9±8.2) vs (60.7±8.4)] was stronger in the study group than the control group (both P<0.05). The study group had notably higher content of superoxide dismutase [(92.5±7.5 vs (84.5±7.4) U/ml], but lower levels of malondialdehyde [(2.4±0.6) vs (3.6±0.3) μmol/L] and C-reactive protein [(2.2±0.7) vs (3.2±0.8) mg/L] when compared with the control group (all P<0.05). No significant difference was seen in occurrence of adverse reactions between the two groups. Conclusion Combination of dapagliflozin with Jinlida granules shows better clinical efficacy in the treatment of elderly T2DM patients. It can effectively regulate the glucose metabolism of the body, improve the function of pancreatic islets, and reduce the inflammation and oxidative stress in the patients.