Objective To elucidate the synergistic mechanism of Liuwei Dihuang Pills (LWDHP), with multi-components, multi-targets and multi-channels in the treatment of senile dementia. Methods We searched Chinese and English databases to obtain the blood components of LWDHP, its clinical and preclinical mechanism research progress in the treatment of senile dementia. Based on the network pharmacology of the key pathophysiological process of Alzheimer’s disease (AD), we screened the anti-AD target of LWDHP and its blood components. Results The therapeutic effect of LWDHP on senile dementia is accurate, with few adverse reactions. Its mechanism includes regulation of cholinergic system, autophagy, cerebral microvascular function, neuron apoptosis, insulin signal transduction pathway, etc. In this review, 35 blood components of LWDHP based on HPLC were collected, and their drug toxicity and safety were evaluated. The network pharmacology analysis based on the pathophysiological process of AD shows that the key components of LWDHP in the treatment of AD are Alisol A monoacetate, Linoleic acid, Alisol F, Tumulosic acid, Methyl eugenol, Palmitic acid and Pachymic acid. Conclusion This article summarizes 35 blood components of LWDHP, summarizes the synergistic mechanism of LWDHP in the treatment of senile dementia, uses network pharmacology to provide a series of potential lead compounds for the development of senile dementia’s drugs, and provides a theoretical basis for further expanding the clinical application of LWDHP.