This paper researches the innovations of management system and mechanisms of TCM.It analyses on the cur- rent questions of medicine management in China that western medicine is the leading factor in the medicine system by comparisons with system and mechanisms of TCM and western medicine.This paper puts forward that the thought of medicine diversity is essential prerequisite of innovation of medicine management system and mechanism.Discuss that the development of TCM should keep to four essential principles and put forward that policy proposal on the innovation for management system and mechanism of TCM.