Chronic bronchitis is mainly characterized by cough, concurrently accompanied by asthma, cough up phlegm and other diseases. Its pathological changes have a great relationship with the so-called phlegm and retained fluid in traditional Chinese medicine. Therefore, there is a saying of “cure retained fluid but not cough" or “treat the spleen to eliminate external retained fluid and treat the kidney to eliminate internal retained fluid” in the treatment. This lecture will introduce the Theory-Method-Formula-Herb and Clinical Thinking in the treatment of chronic bronchitis from the perspective of phlegm and retained fluid. There are two major parts, the first is how to treat acute attack of chronic bronchitis from the thought of "treat the spleen to eliminate external retained fluid", and mainly introduces the clinical application and the variation of herbal medicines and dosage of Xiaoqinglong Decoction, Linggui zhugan Decoction, Xingsu Powder. The second part is how to treat chronic bronchitis in chronic persisting stage from the thought of "treat the kidney to eliminate internal retained fluid", mainly introduces the clinical application and the variation of herbal medicines and dosage of Jinshui Liujun decoction, Jingui Shenqi pill, and other famous prescriptions.