The neural circuit is the material carrier for the realization of brain function, consisting of a complex network of different neurons. Neural circuit identification technology tracks the structure and activity manipulation of specific neural circuits to study their adequacy and necessity for brain function, which is particularly crucial for understanding the pathogenesis of brain diseases. As a high-tech tool in the fields of neuroscience and brain science, it has been gradually introduced into the basic research of Traditional Chinese Medicine (TCM) in recent years. This article systematically reviews the principles of neural circuit identification technology and its application research progress in the field of TCM neuroscience. It is pointed out that the future development direction of this field should be based on the overall concept of TCM characteristics and the design of syndrome differentiation and treatment. Conducting research on the neural circuit mechanisms of diversified methods of TCM to intervene in diseases will help promote the deep integration of TCM and modern neuroscience.