This review summarizes recent progress of the anti-inflammatory effect of traditional Chinese medicine on neurocognitive disorders caused by Alzheimer"s disease (AD) and Parkinson’s disease (PD), and discusses some novel molecular mechanisms of traditional Chinese medicine (such as Xylocoside G, Formononetin, Honokiol, Sodium oligomannate and safflower flavonoid extract), including the regulation on Aβ generation and aggregation, tau phosphorylation, gut-brain axis and gut microbiota, autophagy, microglia polarization, extracellular space, neurogenesis and neurotransmission, for the treatment of AD and PD related neurocognitive disorders.