Objective To investigate the efficacy of Jianpi Huoxue formula combined with acupuncture and moxibustion for patients with precancerous lesions of chronic atrophic gastritis. Methods Eighty patients with precancerous lesions of chronic atrophic gastritis treated at Xi'an Hospital of Traditional Chinese Medicine from December 2023 to December 2024 were selected for the randomized controlled trial. These patients were divided into a control group, treated with western medicine, and an observation group, treated with Jianpi Huoxue formula, acupuncture, and moxibustion, by the random number table method, with 40 cases in each group. There were 22 males and 18 females in the control group; they were (54.63±6.58) years old; their disease course was (5.63±2.54) years. There were 21 males and 19 females in the observation group; they were (55.10±7.52) years old; their disease course was (5.60±2.65) years. The scores of traditional Chinese medicine symptoms, gastric mucosal function, TLR4 inflammatory pathway, and serum tumor markers were compared between the two groups. t and χ2 tests were used for the statistical analysis. Results After the treatment, the scores of major and minor symptoms and total score in the observation group were 4.01±0.12, 3.10±0.21, and 7.11±1.23, which were lower than those in the control group (5.10±0.66, 4.00±0.52, and 9.10±2.01) (t=10.276, 10.149, and 5.340; all P<0.05). The scores of gastric mucosal inflammation, glandular atrophy, intestinal metaplasia, and dysplasia in the observation group were 0.98±0.13, 0.35±0.03, 0.48±0.12, and 0.35±0.06, which were lower than those in the control group (1.91±0.31, 1.55±0.23, 1.34±0.24, and 1.23±0.17) (t=17.497, 32.720, 20.270, and 30.872; all P<0.05). The levels of Toll-like receptor 4 (TLR4), nuclear factor kappa B (NF-κB), interleukin-6 (IL-6), and tumor necrosis factor-alpha (TNF-α) in the observation group were (10.70±0.06)%, (620.90±10.44) ng/L, (30.78±3.90) ng/L, and (25.11±2.52) ng/L, which were lower than those in the control group [(15.98±0.31)%, (730.00±10.15) ng/L, (44.31±5.48) ng/L, and (35.97±3.31) ng/L] (t=105.758, 47.388, 12.722, and 16.510; all P<0.05). The levels of carcinoembryonic antigen (CEA), carbohydrate antigen 19-9 (CA19-9), carbohydrate antigen 72-4 (CA72-4), and carbohydrate antigen 125 (CA125) in the observation group were (9.10±1.23) mg/L, (30.02±3.10) U/ml, (4.37±1.30) U/ml, and (17.58±2.37) U/ml, which were lower than those in the control group [(13.11±2.14) mg/L, (42.01±4.17) U/ml, (6.38±2.34) U/ml, and (25.35±3.41) U/ml] (t=10.274, 14.594, 4.748, and 11.833; all P<0.05). The overall incidence rate of adverse reactions in the observation group was lower than that in the control group (χ2=5.164; P<0.05). Conclusion Jianpi Huoxue formula combined with acupuncture and moxibustion in the treatment of patients with precancerous lesions of chronic atrophic gastritis can effectively improve their gastric mucosal function, optimize the TLR4 inflammatory pathway, and reduce the risk of adverse reactions.