Objective To analyze the effect of microneedling combined with traditional Chinese medicine moxa-wool moxibustion on inffammatory factor levels in patients with neurodermatitis. Methods A total of 86 patients with neurodermatitis admitted to the Hospital of Yutian County from May 2024 to May 2025 were selected, and they were divided into the control group and the study group according to the order of appointment date, with 43 patients in each group. The control group was treated with halometasone cream, and the study group was treated with microneedling combined with traditional Chinese medicine moxa-wool moxibustion on the basis of the control group. The clinical efffcacy, inffammatory factor levels, immune regulatory factor levels and neurotrophic factor levels were compared between the two groups. Results The total effective rate of the study group (95.35%) was higher than that of the control group (81.40%) (P<0.05). The levels of TNF-α, IL-6 and IL-8 in the study group after treatment were lower than those in the control group (P<0.05). The levels of SP, β-EP and 5-HT in the study group after treatment were lower than those in the control group (P<0.05). The levels of GDNF and BDNF in the study group after treatment were higher than those in the control group (P<0.05). Conclusion Microneedling combined with traditional Chinese medicine moxa-wool moxibustion in the treatment of neurodermatitis has a good effect. It can effectively regulate the levels of inffammatory factors, immune regulatory factors and neurotrophic factors, which is an important mechanism for improving its clinical effect.