Objective To explore the therapeutic effect and mechanism of Funaoling Prescription on rats model with vascular dementia (VD). Methods A total of 30 rats were randomly assigned to model group, sham operation group, or Funaoling Prescription group, with 10 rats in each group. The model and Funaoling Prescription groups prepared for VD model through permanent ligation of bilateral common carotid arteries. After one⁃week successful modeling, intragastric administration of Funaoling Prescription was given to the Funaoling Prescription group, whereas the sham operation and model groups received intragastric administration with equivalent volume of distilled water. After 4 weeks of intervention, escape latency and the number of crossing the platform area, the number of neurons in hippocampal CA1 region, as well as levels of serum tumor necrosis factor α (TNF⁃α), nuclear factor kappa B (NF⁃κB), interleukin (IL)⁃1β, IL⁃10, and hippocampal Notch1 and Jagged1, vascular endothelial growth factor A (VEGFA), vascular endothelial growth factor receptor 2 protein expressions were compared between rats of various groups. Results Compared with the sham operation group, rats in the model group exhibited increased escape latency at various time points, whereas reduced times of crossing the platform area (P<0.05). Compared with the model group, the Funaoling Prescription group depicted shorter escape latency on the third and fifth day, while increased times of crossing the platform area (P<0.05). Compared with the sham operation group, the number of neurons in the hippocampal CA1 region of the model group decreased (P<0.05). Compared with the model group, the number of neurons in the hippocampal CA1 region was increased in the Funaoling Prescription group (P<0.05). Compared with the sham operation group, the levels of serum TNF⁃α, NF⁃κB, IL⁃1β and IL⁃10 in the model group were increased (P<0.05). Compared with the model group, the levels of serum TNF⁃α, NF⁃κB, IL⁃1β in the Funaoling Prescription group were decreased, while the level of IL⁃10 was increased (P<0.05). Compared with the sham operation group, the expressions of Notch1 and Jagged1 proteins in the hippocampal tissues of the model group were increased (P<0.05). Compared with the model group, the protein expressions of Notch1, Jagged1 and VEGFA in the hippocampal tissues of the Funaoling Prescription group were increased (P<0.05). Conclusion Funaoling Prescription can effectively improve the learning and memory ability of VD rat models. The mechanism may be related to reducing hippocampal neuron loss, reducing neuroinflammatory response and promoting angiogenesis.