Objective: To evaluate the efficacy and molecular mechanism of modified Ermiao granules in eliminating HPV16/18/58 subtype infection and reversing cervical intraepithelial neoplasia (CIN) I in Han Chinese women. Materials and methods: A total of 135 cases of CIN I with HPV16/18/58 infection from May 2016 to April 2019 were randomly and equally divided into three groups: control group, no treatment given; traditional Chinese medicine treatment group, treated with modified Ermiao granules; and interferon group, treated with recombinant human interferon \alpha2b gel. Each group had 45 cases. The negative rate of HPV, CIN I reversal, the levels of CD3+, CD4+, CD8+, IgA, IgM, and IgG, the expression of TLR4, p16, and ki67, the amplification of hTERC, and the mRNA expression levels of P16 and Ki67 were compared. Result: Modified Ermiao granules and interferon could reduce the negative HPV rate, promote the CIN I course reversal, significantly decrease the TLR4, p16, and ki67 expression levels, and decrease the hTERC amplification. The difference among the three groups was statistically significant (P 0.0167). The CD3+, CD4+, IgA, IgM, IgG, and CD8+ levels were significantly increased by modified Ermiao granules and interferon, and the P16 and Ki67 expression levels were significantly decreased (P 0.05). Modified Ermiao granules had more obvious advantages in eliminating HPV, reversing CIN I, reducing TLR4 protein expression and hTERC amplification, and improving IgA, IgM, and IgG levels compared with those of the interferon group (P 0.0167, P 0.05). Conclusion: Modified Ermiao granules can improve the HPV clearance rate, reverse the CIN I course, inhibit cell proliferation, enhance cervical local immune function, and improve inflammatory stress level. Modified Ermiao granules has a good curative effect on HPV16/18/58 subtype infection and CIN I in Han Chinese women.