Objective To analyze the application effect of traditional Chinese medicine immersion bath therapy combined with lipid hydrocolloid dressing and high quality nursing in the repair of residual wounds after moderate burns. Methods A total of 50 patients with residual wounds after moderate burns admitted to the Department of Burn and Plastic Surgery of our hospital from June 2022 to February 2023 were selected as the research objects. They were randomly divided into control group and observation group, with 25 patients in each group. The control group was treated with routine western medicine combined with routine nursing. The observation group was treated with traditional Chinese medicine immersion bath combined with lipid hydrocolloid dressing, and combined with high quality nursing. The clinical indexes, wound recovery, pain degree and scar condition were compared between the two groups. Results The duration of dressing change, wound healing time and hospitalization time in the observation group were shorter than those in the control group (P<0.05). The VAS score of the two groups after 6 days of treatment was lower than that before treatment, and that in the observation group was lower than that in the control group (P<0.05). The VSS score of the two groups at 3 months after treatment was lower than that at 1 month after treatment, and that in the observation group was lower than that in the control group (P<0.05). Conclusion The application of traditional Chinese medicine immersion bath therapy combined with lipid hydrocolloid dressing and high quality nursing in the repair of residual wounds after moderate burns is effective, which can shorten the time of dressing change, reduce the number of dressing changes, accelerate the speed of wound healing, reduce pain, promote patients to recover and discharge as soon as possible, and effectively improve the scar condition.