This article performed a model of osteoporosis rats using the method of ovariectomy and observed efficacy of Tianchang Capsule on treatment of osteoporosis rats. Comparing the effect with positive drug to explore the mechanism of Tianchang Capsule in postmenopausal osteoporosis. Female SD rats were randomly assigned to 6 groups (10 in each group): control (sham-treated), OVX (by ovariectomy), OVX+AL (by ovariectomy, received alendronate sodium), OVX+LTC (by ovariectomy, received low dosage Tianchang Capsule), OVX+MTC (by ovariectomy, received middle dosage Tianchang Capsule), OVX+HTC (by ovariectomy, received high dosage Tianchang Capsule). After ovariectomy operation, alendronate or Tian Chang capsule were given for 12 weeks. Bone metabolism was measured by bone mineral density (BMD). With 12-week treatment, BMD reduced in OVX group, in bone formation and resorption parameters increased however, pathological sections indicated destruction of trabecular bone structure in the meanwhile (P < 0.05 or P < 0.01). In alendronate sodium and Tianchang Capsule treatments groups, comparing with control, both treatments significantly increased BMD level and improved the trabecular bone tissue damage, also inhibit excessive actively bone resorption and bone formation (P < 0.05 or P < 0.01). Tianchang Capsule were used as good natural drugs for the treatment of ovariectomy induced osteoporosis rats, by increasing bone mineral density, bone formation and bone resorption.