Objective: Investigate the development status of preparations in medical institutions in Chongqing, analyse the key factors restricting the development of preparations in medical institutions in Chongqing, and put forward targeted countermeasures and suggestions, so as to promote the sustainable and healthy development of preparations in medical institutions in Chongqing. Methods: Data were collected by means of literature review, expert interview, questionnaire surveys (Questionnaire Star, which is a platform providing functions equivalent to Amazon Mechanical Turk). SPSSAU was used for statistical analysis, and the scientific research method of classic Grounded Theory was used for data processing and theoretical construction [1]. The in-depth situational grounded research was conducted on the preparations of medical institutions in Chongqing. Results and conclusion: Due to the insufficient attention paid by the government, hospitals and the market, the development of preparations in Chongqing’s medical institutions could not keep up with the development of the pharmaceutical industry and drug administration supervision. In view of this, the government should coordinate the deployment of “capital increase, staff increase, strength increase” and “integration and joint construction” to promote development, focus on the research and development of Chinese medicine preparation varieties that are in short supply in the market and are urgently needed clinically, and incubate new drugs in the process of inheritance and innovation. The preliminary theoretical summary of the current situation and development of pharmaceutical preparations in medical institutions in Chongqing can provide a basis for decision-making by management departments and promote its sustained and healthy development.