The health industry of Traditional Chinese Medicine is closely related to people's health. Focusing on improving the resilience and safety level of industrial chain and supply chain of key industries of Traditional Chinese Medicine is of great significance for improving the safety level of Traditional Chinese Medicine health industry chain and promoting the construction of Healthy China. Based on the three dimensions of the development environment of industrial chain, the competitiveness of industrial chain and the stability of industrial chain, 13 indices are selected to construct the index system of safety level measurement of Traditional Chinese Medicine health industry chain. The entropy weight⁃TOPSIS model was used to measure the safety level of Traditional Chinese Medicine health industry chain from 2012 to 2022. The obstacle degree model was introduced to explore the internal obstacles to the safe development of Traditional Chinese Medicine health industry, and to explore its improving path. The results indicated that the safety level of Traditional Chinese Medicine health industry chain in China had been improved in the past five years, and is closer to the safety state, but there are still obstacles to the safety level, therein the industry concentration degree, the domestic market prospect and the TC index of international trade competitiveness of the industry are obstacle factors to the safety level of Traditional Chinese Medicine health industry chain in recent years. Therefore, in the future development of Traditional Chinese Medicine health industry, taking root in China should be conducted, the cultivation of New Quality Productive Forces should be accelerated, and the sustainable and healthy development of Traditional Chinese Medicine health industry with new qualitative momentum should be driven.