Herbs are classified in two major dimensions. The first dimension refers to the temperature characteristics of the herb, namely hot, warm, cold, neutral, and aromatic. The second dimension refers to the taste property of the herb, namely sour, bitter, sweet, spicy, and salty.

Warm herbs can be used with individuals suffering from Heat disorders, but the herb with warm energy must be mixed with herbs with Cool/Cold energy so that the overall balance of the mixture is on the Cool side. Likewise, Cool herbs can be used with people with Cold disorders as long as the overall balance of the mixture is warm. Neutral herbs are those that are neither hot nor cold, so they are often considered gentle herbs.

Chinese herbalists rarely prescribe a single herb to treat a condition. They create formulas instead. A formula usually contains at least four to twenty herbs.

Decoction is the traditional method of preparing herbal medicine. A decoction is a concentrated form of tea. The practitioner weighs out a day's dosage of each herb and combines them in a bag. A patient is given a bag for each day the herbal formula will be taken. The herbs are then boiled in water by the patient at home. The boiling process takes from 30-60 minutes and the resulting decoction will be consumed several times during the day.