Danggui Buxue Tang (DBT), a Chinese medicinal decoction that is commonly used as a dietary supplement in treating woman with menopausal irregularity, contains two herbs: Radix Astragali (Huangqi) and Radix Angelicae Sinensis (Danggui). The ratio of Radix Astragali and Radix Angelicae Sinensis used in DBT should be 5:1 as described in China in 1247 A.D.; however, the rationale of this formula has not been given. Here, the chemical and biological properties of DBT, prepared from different ratios of the drugs, were determined. Significantly, higher amounts of Radix Astragali-derived astragaloside IV, calycosin, and formononetin and Radix Angelicae Sinensis-derived ferulic acid were found in DBT with Radix Astragali and Radix Angelicae Sinensis in a 5:1 ratio. By using the biological effects of DBT in stimulating osteoblast proliferation, estrogen promoter activation, and anti-platelet aggregation activity, the drug ratio of 5:1 produced the best effects. In addition, the use of ethanol-treated Radix Angelicae Sinensis enhanced the efficacy of DBT, and the treatment further increased the solubilities of chemical constituents. By analyzing the correlation of chemical and biological results, several chemicals showed positive correlation with DBT-induced bioactivities. The current results support the ancient formulation of DBT, and the identified chemicals could serve as markers for quality control of DBT.