Torreya grandis var. merrillii Hu is a unique dry fruit tree species in China. It is usually grown together with Chinese traditional herbal plants in a compound planting mode. By measuring the growth change index of and the change characteristics of soil water content for Torreya grandis in the compound planting modes of Torreya grandis with traditional Chinese herbal plants, such as with Artemisia argyi, with Polygonatum sibiricum, with Peucedanum praeruptorum and with Rubus chingii, this study explores the compound planting mode of Torreya grandis and Chinese herbal plants with the best growth and soil-water conservation ability, so as to provide a reference for the rationality of the compound planting of Torreya grandis and different Chinese herbal plant. The study results show that Torreya grandis - Artemisia argyi and Torreya grandis - Polygonatum sibiricum are the two compound planting modes with the highest growth rate of base diameter of Torreya grandis. The intermediary effects of different compound planting modes, different slope positions and different compound planting modes can jointly explain 83.4% of the changes of soil water content under the forest. In the Torreya grandis - Artemisia argyi mode, Torreya grandis grows better and has the best soil water conservation capacity. Therefore, when conducting operation of compound planting Torreya grandis and a medicinal herbal plant, Artemisia argyi can be considered as a first choice from any medicinal herbal plants.