Chinese herbal medicine is a traditional natural medicine with wide sources, less drug residues, small toxic and side effects, no resistance and other excellent characteristics. Some active ingredients in Chinese herbal medicine have anti-inflammatory, antioxidant, antimicrobial and other effects, which widely used in daily health care and clinical medical treatment. In recent years, more and more high-safety, mild and low-irritating Chinese herbal active ingredients are used in cosmetics as natural additives. At the same time, the demand for cosmetics containing Chinese herbal medicines in the global market is increasing, which provides ideas and impetus for the research on the application of Chinese herbal medicines and their active ingredients in cosmetics. Firstly, the structure and function of six common active ingredients in Chinese herbal medicine, such as phenolics, flavonoids, saponins, terpenoids, carotenoids, and natural polysaccharides are summarized; Next the five major functions of the active ingredients are reviewed: including moisturizing, skin whitening, sun protection, anti-wrinkle and anti-acne and their mechanism of action; Finally, the problems of functional ingredients of Chinese herbal medicine in the application of cosmetics are put forward and the future development direction is pointed out.