Nida's translation theory has been wide spread in China for long. The equivalent translation theory from Nida has produced significant influence to the translation society in China and many translation works are made to certain extent with help or inspiration from his theory. Nida proposed the ideas of dynamic equivalence and believed that the translation should be a representation of the source text in another language with closes and nature words and the documents translated should meet reader's needs and that the reaction of readers of the translations should be the same as readers of the source text. These opinions are also applicable to traditional Chinese medicine translation, because as a medical science, it is obviously unwise to use the traditional free translation method. With Nida's theory of equivalence, the vocabularies, terms and medical records and medical treatment can be accurately represented. Through brief introduction to Nida's theory, this paper aims to study the application of Nida's theory in traditional Chinese medicine (TCM) translation, especially from views of treatment to terms in TCM, studies in various disciplines and basic qualifications of translators.