Objective: To explore the clinical efficacy of the external application of Jiegu San combined with small splint external fixation after closed reduction in treating patients with distal radius fracture. Methods: A total of 397 cases with distal radius fractures admitted from October 2019 to December 2023 were recruited as study subjects and divided into the control group (n = 180) and the observation group (n = 217) according to the treatment method. The control group was treated with small splint external fixation after closed reduction, while the observation group was treated with Jiegu San external application in addition to small splint external fixation following closed reduction. The clinical efficacy, circumference of the fracture site, and pain level of both groups were observed and compared. Results: The total clinical efficacy rate of patients in the observation group (97.70%) was significantly higher than that of patients in the control group (88.88%; P = 0.000). Additionally, the circumference of the fracture site of the observation group was significantly smaller than that of the control group after 3 weeks of treatment (P = 0.000). Moreover, the pain score of the patients in the observation group was significantly lower than that of the control group after 3 weeks of treatment (P = 0.000). Conclusion: In the treatment of distal radius fracture, the combination of Jiegu San external application combined with small splint external fixation following closed reduction can effectively improve the clinical efficacy of patients, promote the reduction of swelling, and reduce the pain level of patients, which is worthy of further promotion.